What exactly is "smart" about a contractual entitlement to X% of the profits of some company? What's to stop the operators from hiding profits from the automate

What exactly is "smart" about a contractual entitlement to X% of the profits of some company? What's to stop the operators from hiding profits from the automated hands of the smart contract? How smart contracts are supposed to work: 1. I decide to enter into some agreement with an untrusted third party. 2. Both parties put the collateral related to the agreement into some sort of smart escrow account. 3. Events unfold. Smart contract system needs to be able to observe and validate these events somehow. 4. Depending on what happens, the smart contract system decides who gets the collateral. Neither party can back out of the deal after the fact, or claim that some loophole makes the deal void -- the software is the final arbiter. There's no way to make "give me money, and if I manage to turn it into more money, I promise to give some of it back to you" into a grifter-proof smart contract, despite the wishful thinking of anarcho-libertarians everywhere. This whole thing reeks of sleazebags trying to trick unsophisticated investors/speculators who are catching on to the idea that "basically every ICO is a scam" into thinking that they've created a financial product with less risk. There is absolutely nothing stopping someone running an arrangement like this from running away with the money, just as with ICOs.