# kaal:claim:3808852-029

**Claim.** Automation and the absence of a human backstop in compliance, back office, and settlement create new risks to market integrity on decentralized exchanges, including wash trading, frontrunning, and insider trading.

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

**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.** Wulf A. Kaal, *Decentralization and Feedback Effects* (2021), IV. Market Decentralization, page 18

**Cite as.** Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852

**Verify.** sha256 of source PDF `31e91158fdeefebc2f0be54ebf89751f7cdd4c89ecea932888f5ba9be6b1caba` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202021%20-%20Decentralization%20and%20Feedback%20Effects.pdf

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

**Topics.** economics, risk-and-incentives, compliance

**Keywords.** dex, market-manipulation, automation-risk, compliance

**Related claims.**

- extends: https://wulfkaal.github.io/claims/3782216-022

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