GlossaryAdvanced
Unincorporated Association
The default legal status a DAO without a formal entity may be treated as, often without limited liability.
An unincorporated association is the default legal treatment several jurisdictions may apply to a group acting collectively without a formal registered entity — a status that can resemble a general partnership and typically does not limit members' personal liability.
This is the legal gap many DAOs adopt a legal wrapper specifically to address.
Examples
- A DAO with no legal wrapper may default to being treated as an unincorporated association in some jurisdictions.
- Members of an unincorporated association can potentially face personal liability for the group's actions.