# Legal risk

`kaal:entity:legal-risk`

**Status.** derived

This node is assembled mechanically from the 5 claims that carry the concept tag `legal-risk`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

5 claims across 5 works, 2017 to 2023.

**2017**

- [2939127-026](https://wulfkaal.github.io/claims/2939127-026) [failure/argued] *(failure mode)* -- Because the legal origin of smart contracting is unsettled, lawyers may argue that smart contracts are void and unenforceable under the law even where the smart contract accurately reflects the parties' underlying agreement.
  > While smart contracts may reflect the underlying contract between parties, lawyers may argue that "smart contracts" are void and unenforceable under the law.
  Mark Fenwick, Wulf A. Kaal, Erik P. M. Vermeulen, Legal Education in the Blockchain Revolution (2017). SSRN: https://ssrn.com/abstract=2939127
- [3071378-009](https://wulfkaal.github.io/claims/3071378-009) [failure/argued] *(failure mode)* -- Even where a smart contract reflects the underlying bargain between the parties, lawyers may argue that smart contracts are void and unenforceable under the law.
  > While smart contracts may reflect the underlying contract between parties, lawyers may argue that "smart contracts" are void and unenforceable under the law.
  Wulf A. Kaal, Blockchain Technology and Race in Corporate America (2017). SSRN: https://ssrn.com/abstract=3071378

**2021**

- [3799320-008](https://wulfkaal.github.io/claims/3799320-008) [predictive/argued] *(failure mode)* -- 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.
  > 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.
  Wulf A. Kaal, A Decentralized Autonomous Organization (DAO) of DAOs (2021). SSRN: https://ssrn.com/abstract=3799320
- [3936876-003](https://wulfkaal.github.io/claims/3936876-003) [condition/asserted] *(failure mode)* -- Without the ability to rely on proven custody providers, mainstream and legacy institutional investors are restrained from making digital asset investments for legal or business reasons.
  > Without the ability to rely on proven custody providers, mainstream and legacy institutional investors are restrained from making digital asset investments for legal and / or business reasons.
  Wulf A. Kaal, Hayley Howe, Custody of Digital Assets (2021). SSRN: https://ssrn.com/abstract=3936876

**2023**

- [4529715-017](https://wulfkaal.github.io/claims/4529715-017) [failure/argued] *(failure mode)* -- DAOs without effective governance structures and policies risk violating local laws and regulations, exposing themselves to legal and regulatory consequences.
  > Furthermore, DAOs that do not have effective governance structures and policies may be at risk of violating local laws and regulations, which can lead to legal and regulatory consequences.
  Wulf A. Kaal, Josh Bykowski, Decentralized Autonomous Organizations (DAO) – A Market Meta Analysis (2023). SSRN: https://ssrn.com/abstract=4529715

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/legal-risk.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.