# kaal:claim:3652481-013

**Claim.** If DAO members do not formalize a structure for their human created entity, courts are very likely to impose one on them, which is a serious risk of DAO membership.

**Type.** failure  **Support.** evidenced

**Holds when.**

- the DAO has no off chain legal entity
- a dispute reaches a court

**Source quote.**

> However, a very serious risk is associated with DAO membership in the sense that if the DAO members do not formalize a structure for their human-created entity, courts are very likely to impose one for the members of the DAO.

**From.** Wulf A. Kaal, *Decentralized Autonomous Organizations – Internal Governance and External Legal Design* (2020), III.2 Regulatory Uncertainty, page 24

**Cite as.** Wulf A. Kaal, Decentralized Autonomous Organizations – Internal Governance and External Legal Design (2020). SSRN: https://ssrn.com/abstract=3652481

**Verify.** sha256 of source PDF `530b3a40c244aeca2eb4c53f4c9b4d6b2962bd6be9f92b4ebe17139c17f4c0e0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202020%20-%20Decentralized%20Autonomous%20Organizations%20%E2%80%93%20Internal%20Governance%20and%20External%20Legal%20Design.pdf

**Failure mode.** court imposed structure  (family: legal-personality-and-liability-gap)

**Topics.** law-and-legal-systems, dao

**Keywords.** personal-liability, legal-recognition, partnership-default, dao-legal-design

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3799320-008

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.