How Does the Immutability of a Smart Contract Affect Dispute Resolution in Derivatives Trading?

Immutability means the code, once deployed, cannot be changed. This is a double-edged sword: it guarantees that the contract will execute exactly as written, eliminating counterparty risk.

However, if a mistake is coded or an external event causes an unforeseen outcome, the contract cannot be easily modified or reversed, making dispute resolution difficult and potentially requiring off-chain legal intervention.