There is a functional arbitration platform called Kleros. It could be tied in with any contract to have some human “legal” input. In fact, any contract can be admin‘d by one person or a group. See DAO’s - curve.fi and aave are 2 examples, they are both community run where ppl vote on proposals with their shares.
As I think you were getting at, there’s enormous systemic risk with hacks and bugs. Now the contract ecosystem is so intertwined that a bug in one can cause a cascading effect. E.g a price feed which powers a DeFi platform could be hacked/attacked. Even a bug in a simple erc20 could have massive consequences since a lot of the contracts are intertwined
As I think you were getting at, there’s enormous systemic risk with hacks and bugs. Now the contract ecosystem is so intertwined that a bug in one can cause a cascading effect. E.g a price feed which powers a DeFi platform could be hacked/attacked. Even a bug in a simple erc20 could have massive consequences since a lot of the contracts are intertwined