Through YouTube's embed API (how we pull videos into PlayPosit), pre and post-roll ads do not play in PlayPosit. This is a parameter controlled completely by YouTube. While pre and post-roll ads do not play, end users on PlayPosit will still see pop-up banners during playposit bulbs. Because we are not making money off of the original YouTube uploaders service, this falls within compliance of the YouTube terms.
It is worth noting that while the original YouTube is streamed through PlayPosit, it accumulates views on the original YouTube. This is the case because YouTube content is never 'uploaded' to the PlayPosit site and is instead directly streamed through YouTube.