# Discretionary Exclusion

In rare but critical cases, OLTA may enact a **discretionary exclusion** of an underlying asset from an index even if the asset passes all eligibility filters.

This mechanism provides a **rapid response tool** to protect the protocol in scenarios where automated rules are insufficient or too slow to mitigate severe risk.

**Situations that may trigger exclusion:**

* Reputational scandals or public controversy involving the asset’s issuer
* Legal or regulatory escalation (e.g., sanctions designation, cease-and-desist orders)
* Abandonment of the project, critical governance failure, or malicious forks
* Structural conflicts or risks compromising investor protection or regulatory standing

**Operational Process:**

* **Immediate action** may be taken by core contributors (via smart contract admin rights or multisig) in urgent cases
* A **governance vote** is then initiated retroactively to validate or overturn the exclusion, ensuring transparency and community oversight
* All discretionary actions are logged and published for auditability

This framework applies solely to **index constituents** not to users or general protocol access.
