DAO Governance Participation Disclaimer

Panther DAO is the decentralised decision‑making body of Panther Protocol. Tokenholders shape the future of the protocol by debating, proposing, and voting on matters such as protocol deployment, parameters and upgrades, treasury allocations, and ecosystem initiatives.

Participation in DAO governance is voluntary and open to tokenholders. With this power comes responsibility: governance participants should review proposals carefully, act in good faith, and contribute constructively to the long‑term sustainability of the protocol.

Panther Protocol Foundation is not responsible for DAO governance outcomes. DAO decisions are made independently by tokenholders.

By engaging in Panther DAO governance, participants accept the following responsibilities:

• Informed decision‑making: Conduct your own research and due diligence before voting or submitting proposals.
• Good faith participation: Respect community processes, contribute constructively, and avoid manipulative or harmful behaviour.
• Accountability: Recognise that governance decisions are collective and may carry real consequences for the protocol and its participants.

Participation in DAO governance carries significant risks. These include, but are not limited to:

Regulatory and Legal Risks

Panther Protocol operates in an evolving and uncertain regulatory environment. Activities potentially facilitated by the protocol — such as the transfer of zero‑knowledge‑based zAssets and operation of shielded pools — may fall within the scope of regulated financial services in certain jurisdictions, including:

• Securities regulation
• Derivatives and commodity regulation
• Money transmission, sanctions and anti‑money laundering laws
• Crypto‑asset service provider rules under frameworks such as EU MiCA or UK FCA requirements

Although Panther Protocol includes privacy‑preserving and compliance features (e.g. zero‑knowledge proofs and optional KYC layers), these do not guarantee immunity from regulatory classification or enforcement.

Regulatory bodies such as the U.S. SEC and CFTC have scrutinised DAOs and DeFi protocols. Governance participants could become subject to enforcement actions depending on their level of involvement, especially in jurisdictions where DAOs lack formal legal recognition.

Smart Contract and Technical Risks

Panther Protocol relies on complex smart contracts, cryptographic primitives, and third‑party oracles. These are inherently subject to bugs, exploits, or misconfigurations, which could result in unexpected outcomes or protocol failures — even in audited codebases.

Governance and Voting Risks

Panther Protocol’s governance relies on token‑weighted voting. This may lead to governance centralisation, where large tokenholders exert disproportionate influence. Low participation or poorly framed proposals may also degrade governance quality and produce harmful or irreversible decisions.

Interpersonal and Dispute Risks

DAO participants may hold differing visions, values, or priorities. Without formal governance structures or dispute resolution mechanisms, disagreements can escalate, harming cohesion or delaying critical updates.

Liability Risks

DAO participation may expose individuals to personal liability under certain legal theories. Courts in multiple jurisdictions have considered DAOs as unincorporated associations or general partnerships, potentially making individual tokenholders personally liable for DAO actions.

Relevant cases include:

• CFTC v. Ooki DAO: individuals who voted on governance proposals were held liable for regulatory violations.
• Sarcuni v. bZx DAO: DAO tokenholders were deemed potentially liable as general partners under California law.
• Samuels v. Lido DAO: allegations of general partnership liability were permitted to proceed against DAO participants.

These cases suggest that even passive voting or minor contributions to DAO governance could carry legal risk. Panther Protocol does not currently offer limited liability protections to tokenholders, contributors, or governance participants.

Financial and Market Risks

Tokens associated with Panther Protocol, including $ZKP, may experience high volatility, low liquidity, or market manipulation. Governance decisions can materially affect the tokenomics, utility, and performance of the protocol, which may in turn affect the value of your holdings and lead to partial or total financial loss.

By participating in Panther Protocol governance, you confirm that you:

• Understand the regulatory, technical, legal, and financial risks involved;
• Have conducted independent due diligence;
• Accept full responsibility for your participation and actions.

For information on the Foundation’s independence and its non‑involvement in DAO governance, please see the Panther Protocol Foundation – Governance & Neutrality Policy.