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How Does the Voting Mechanism Affect a Member’s Liability Exposure?

In a DAO without a legal wrapper, the voting mechanism can increase a member's liability exposure. If members actively vote on management and operational decisions, they are more likely to be deemed "active participants" or "partners" in the eyes of a court, strengthening the argument for joint and several liability.

Passive token holders may have a better defense.

What Is a Decentralized Autonomous Organization (DAO) and How Can It Govern a Derivatives Protocol?
What Is the Regulatory View on Centralized Staking Providers Holding Significant Governance Power?
How Does the Concept of ‘Counterparty Risk’ in Derivatives Contrast with ‘Key Compromise Risk’ in Crypto?
What Is Implied Volatility (IV) and How Does It Affect the Premium of a Crypto Call Option?