---
title: Legal Requirements
order: 3
hideLanguageSelector: true
keywords: "format, event, events, meetup, meetups, guide, agenda"
description: "The legal requirements for proposing new collateral for the Maker Protocol."
---

# Legal Requirements

This section describes which legal information to provide to a risk team. This guidance hasn’t yet been approved by MKR holders as a template for risk teams to use, so be aware that there may be changes to this section.

Legal assessment constitutes one of the central steps in the collateral onboarding process. You will see legal questions in the application form below.

The list of questions is not exhaustive, so the process, in many cases, will involve iterative conversations with a person/entity promoting onboarding of the token and/or other relevant actors.

Very often, the legal structure of a given token will be novel, and the MKR governance must fully understand it in order to make an educated decision regarding token onboarding and related risk parameters.

## Factors

In general, the legal analysis will aim at determining the below factors:

<List>

- Legal risks associated with the token and its role as an available collateral type;

- Regulatory consequences (if any) of onboarding the token for both the particular constituencies involved (e.g., holders, CDP users, Keepers, other intermediaries, etc.) and for DCS.

</List>