After the kerfuffle recently about one of the NSFW instances allowing drawn CSAM, I reckon you could get in trouble if you federate with an instance like that if you’re hosting in a jurisdiction where that sort of content is illegal. Or imagine in the future, deepfake celebrity porn may get federated onto your instance and put you in the firing line for hosting that illegal content. NSFW is the most obvious, but I think there could be ramifications for hosting content on your own instance federate din from elsewhere that is illegal in your jurisdiction.