# kaal:claim:5886342-036

**Claim.** Where an external claim is brought against a DAO member for actions taken in good faith on behalf of the DAO and within its mandate, the DAO indemnifies that member out of the treasury, with no indemnification beyond the treasury and none where the member acted with gross negligence, wilful misconduct or bad faith.

**Type.** design  **Support.** asserted

**Holds when.**

- action taken in good faith and within the DAO mandate
- indemnification is limited to the DAO treasury
- no indemnity for gross negligence, wilful misconduct or bad faith

**Source quote.**

> (3) If an external claim is brought against a DAO Member for actions undertaken in good faith on be-

**From.** Furrer Andreas, Wulf A. Kaal, Stephan D. Meyer, *Universal Digital Law Codex (UDLC)* (2025), Part B, Book V, Section 3, Article 59 Internal Liability, page 13

**Cite as.** Furrer Andreas, Wulf A. Kaal, Stephan D. Meyer, Universal Digital Law Codex (UDLC) (2025). SSRN: https://ssrn.com/abstract=5886342

**Verify.** sha256 of source PDF `dc456a1ce2ea4a356dbcb35dc900ec36be94b8c9b6da4a2c8c268d6301f66359` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Andreas%20et%20al.%20-%202025%20-%20Universal%20Digital%20Law%20Codex%20%28UDLC%29.pdf

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

**Keywords.** dao, indemnification, treasury, liability, good-faith

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