What Are the Primary Governance Risks in a DAO Managing a Derivatives Protocol?

Key risks include voter apathy, where a small group of active token holders can exert disproportionate control, leading to centralization risk. Another risk is malicious governance proposals, where a whale or coordinated group could vote to drain the treasury or alter protocol parameters for personal gain.

Furthermore, smart contract bugs in the governance module itself pose a critical technical risk to the protocol's security and financial integrity.