How Does Immutability Affect the Terms of a Deployed Smart Contract?

Immutability means that once a smart contract is deployed to the blockchain, its code and the terms embedded within it cannot be altered or changed. This feature is fundamental for trust, as it guarantees that the rules of the financial agreement will not be manipulated mid-trade.

For financial derivatives, it ensures that the strike price or expiration date is fixed and unchangeable. However, it also means any bugs or errors in the original code are permanent and cannot be easily patched.