# kaal:claim:3799320-009

**Claim.** Default general partnership treatment would hold every stakeholder of a DAO liable for any debts or legal actions the DAO faces, exposing known participants to regulatory enforcement and civil actions.

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

**Holds when.**

- no legal entity formed
- U.S. partnership default rules apply

**Source quote.**

> Many courts and lawyers would describe the relationship between members of a DAO and their investors as the default general partnership which holds every stakeholder of a DAO liable for any debts or legal actions that the DAO may face.

**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.** Unlimited partner liability  (family: legal-personality-and-liability-gap)

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

**Keywords.** joint-and-several-liability, partnership-default, stakeholder-liability, enforcement-risk

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3652481-040
- supported_by: https://wulfkaal.github.io/claims/5254152-035
- extended_by: https://wulfkaal.github.io/claims/5254152-028
- specializes: https://wulfkaal.github.io/claims/3652481-014

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