Cha & Kwon Law Offices provided legal advisory services to an overseas entity operating a blockchain-based platform, in connection with the drafting of a disclaimer governing the use of its services.

The platform allowed users who stake tokens to participate in governance by expressing views on protocol operations. Given this structure, it was necessary to clearly address in the disclaimer the legal effect of governance votes, the scope of liability arising from smart contract execution, and the potential characterization of voting rights as securities.

In drafting the disclaimer, Cha & Kwon Law Offices structured the document with a focus on: (i) the non-binding nature of governance voting and the company’s discretion in implementation; (ii) limitation of liability for failures or delays in smart contract execution and assumption of risk by participants; (iii) the company’s right to intervene in cases such as voting manipulation; (iv) the public and irreversible nature of on-chain data; and (v) provisions clarifying that voting rights do not constitute securities.

As a result, Cha & Kwon Law Offices ensured that key legal risks associated with governance participation—particularly the non-binding effect of votes, limitation of liability for smart contract execution, and non-securities characterization of voting rights—were clearly addressed, while providing adequate notice to users and defining the operator’s scope of liability. The firm continues to provide practical advisory services from the early stages of legal structuring for decentralized, blockchain-based platforms.