Vulnerabilities in smart contracts for decentralized legal agreements, like OpenLaw, pose significant risks. Coding errors, such as those in Solidity, can lead to exploits, as seen in the 2016 DAO hack, where $50 million in Ether was stolen. Immutable contracts prevent post-deployment fixes, amplifying the impact of bugs. Ambiguities in contract language and jurisdictional challenges complicate legal enforceability. Decentralized networks lack centralized oversight, making it harder to detect breaches. Economic incentives attract malicious actors, targeting financial transactions. Limited auditing expertise and high costs further hinder security. To mitigate risks, thorough code audits, hybrid agreements combining smart and traditional contracts, and clear dispute resolution mechanisms are essential for ensuring the reliability and safety of OpenLaw’s blockchain-based legal agreements.