You just described how the adjudication of all contracts works. Smart contracts are no more above the law than paper contracts are. > And the participants to s

You just described how the adjudication of all contracts works. Smart contracts are no more above the law than paper contracts are. > And the participants to such a contract have agreed that the execution of that software is the entirety of their transaction. How would such an agreement be communicated or enforced? The same thing happens with paper contracts: when you sign on the dotted line, it's understood that the contract encompasses the entirety of your transaction. However, there always remains the possibility of appealing to the judicial system later to argue that the contract is void/unenforceable.