How Does the Voting Mechanism Affect a Member's Liability Exposure? ⎊ Path

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.

Can a DAO Legally Offer a ‘Synthetic Asset’ That Tracks a Real-World Stock?

What Is Counterparty Risk, and Why Is It Higher in OTC Derivatives?

How Does Active Management of a Position Affect the Profitability of Concentrated Liquidity Provision?

What Is the Specific Risk of “Counterparty Risk” That Dapps Aim to Minimize?

What Is the Difference between a ‘Future’ and a ‘Forward’ Contract?

What Is a ‘Governance Token’ and How Does Its Utility Affect Treasury Decisions?

How Does the Concept of ‘Counterparty Risk’ in Derivatives Contrast with ‘Key Compromise Risk’ in Crypto?

How Can an Investor Verify the Legitimacy of an ICO’s Stated Partnerships?

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