The same concern can also work in reverse, against the exchanges. For example, you could choose not to deposit to an exchange unless they prove to you that the deposit address commits to a covenant which meets your criteria.

Covenants, as a concept, are not inherently bad. There are good uses, and bad uses, and the judgment of good and bad is subjective.

Prudent bitcoiners should always request more information about where they are about to send their sats before they send them.

We already have phrases like:

Maybe we need one for covenant-like transactions, so people remember to assess them before spending, but this is pretty much already handled by #1 above.

Just my 2 sats, and I reserve the right to change my opinion on the subject (so this comment is not a covenant...or is it? because the edit window on SN will close for it ..oh well).