# kaal:claim:3799320-008

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

**Type.** predictive  **Support.** argued

**Holds when.**

- DAOs with no off-chain legal entity
- litigation reaching 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, *A Decentralized Autonomous Organization (DAO) of DAOs* (2021), Regulatory Uncertainty, page 7

**Cite as.** Wulf A. Kaal, A Decentralized Autonomous Organization (DAO) of DAOs (2021). SSRN: https://ssrn.com/abstract=3799320

**Verify.** sha256 of source PDF `c3dff852f2d3f04718c829a24189309a7db4d92d84f6045d3d4f562d87c03e63` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20A%20Decentralized%20Autonomous%20Organization%20%28DAO%29%20of%20DAOs.pdf

**Failure mode.** Court-imposed entity form  (family: legal-personality-and-liability-gap)

**Topics.** law-and-legal-systems, risk-and-incentives

**Keywords.** legal-entity, court-imposed-structure, member-liability, legal-risk

**Related claims.**

- restates: https://wulfkaal.github.io/claims/3652481-013

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