Legal Risk
Legal risk is the risk that an investment, contract, ownership arrangement or financial structure does not operate legally in the way participants expect. This can result from unclear rights, unenforceable agreements, legal disputes or conflicts between different legal systems.
Why it matters to you
A blockchain can record who holds a token without deciding what that token legally entitles the holder to. For RWAs, the connection between the token and enforceable real world rights is fundamental.
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