# kaal:claim:3782216-022

**Claim.** The code that constitutes a decentralized exchange can create new risks to market integrity, because automation removes the human backstop in compliance, back office and settlement.

**Type.** failure  **Support.** argued

**Holds when.**

- decentralized exchanges

**Source quote.**

> The code may also create new risks to market integrity because of its automation and lack of a human backstop in compliance, back office, and settlement.

**From.** Craig Calcaterra, Wulf A. Kaal, *Decentralized Finance (DeFi)* (2021), The basic financial markets

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Decentralized Finance (DeFi) (2021). SSRN: https://ssrn.com/abstract=3782216

**Verify.** sha256 of source PDF `f1739743aa06bbc1641cd65da790d531b69d8628ea3f5cc3fcad1bf5a1242373` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20and%20Kaal%20-%202021%20-%20Decentralized%20Finance%20%28DeFi%29.pdf

**Failure mode.** no human backstop  (family: human-judgment-displacement)

**Topics.** economics

**Keywords.** dex, market-integrity, automation, regulation

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/3808852-029
- extended_by: https://wulfkaal.github.io/claims/3808852-028

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