1. (1) In the case of a failure event, legal personality and limited liability are maintained to the extent necessary to protect decentralized autonomous organization members and participants from personal liability.

2. (2) A failure event may trigger liability on the person deploying or upgrading the decentralized autonomous organization if that person:

   1. (a) acted in bad faith; or
   2. (b) engaged in gross negligence.

Renumbered and Amended by Chapter 92, 2026 General Session