DAO Execution Liability

In line with Subunit’s terms of service, the protocol includes a non-liability clause protecting the DAO executor and other facilitators when they carry out decisions as instructed by the DAO.

What this means for users is that when you vote for a proposal and it passes, the person or entity executing that proposal on behalf of the DAO cannot be held personally liable by the members for the outcomes of that action, provided they execute it reasonably and in good faith as decided.

This clause is important in an investment club context: all members share the risks and responsibilities of decisions. You can’t sue the executor just because a collectively-approved decision later turns out poorly, as long as they executed the exact mandate of the vote.

For example, if the DAO votes to purchase a property and the executor completes the purchase correctly, but the investment doesn’t perform as hoped, members cannot hold the executor responsible for the loss – the decision was the DAO’s.

This framework encourages individuals to take on the executor role (or serve on multi-sigs) without fear of unjust personal liability, while still holding them accountable to execute votes faithfully. It effectively distributes responsibility across the club members rather than concentrating legal risk on the implementer.

All participants in Subunit agree to this principle as part of the terms of joining, reinforcing that Subunit is a collective enterprise rather than a service being sold with guarantees.