How Does the Legal Jurisdiction Impact the Enforceability of a Crypto Master Agreement?

The legal jurisdiction is paramount because the enforceability of key provisions, particularly 'close-out netting' and collateral rights, depends on the insolvency laws of that jurisdiction. If a crypto master agreement is governed by the laws of a jurisdiction that does not legally recognize or uphold netting for digital assets, the agreement's risk-reducing features may be nullified in a default scenario, increasing counterparty risk.