Exit Scam Protocol Switches: Governance-Enabled State Transitions for Value Extraction in DeFi Systems

Exit Scam Protocol Switches represent a class of DeFi failures in which value extraction is executed through authorized protocol mechanisms rather than through external exploitation or contract compromise. These events leverage legitimate upgrade paths, governance actions, emergency controls, or configuration switches to transition a protocol from a redeemable, secure operating state into an extractive or non-recoverable state. Because such transitions are formally valid and procedurally authorized, they evade traditional exploit detection models and post-mortem classifications. This paper defines Exit Scam Protocol Switches as a governance-layer threat, analyzes their structural enablers and execution patterns, and outlines mitigation requirements necessary for restoring trust, accountability, and institutional viability in upgradeable decentralized financial systems.