heyitsbluejay When it comes to contracts, it comes down to whether it is right for you. It is entirely possible that a few years from now you won't really care about your IP. Or maybe like @ReincarnatedSaint you need the money. All perfectly logical and good reasons to sign the contract and see some income.
Just make sure you read the whole contract and are fine with the terms and conditions. You should also research the people you do business with, but it should be relatively easy to find the good and the bad about Webnovel.
MotivatedSloth Several good points, but I would like to mention that contract fears are actually adult fears, a child would probably sign it sight unseen. Children tend to be more naive than adults. Also can you clarify about 2nd point about passive income? Pretty sure you have to actively write to earn money as an author. Unlike say purchasing a bond and earning interest or buying shares for dividends. For additional minor nitpicks, asking other people about their experience is a good thing to do. However, it is not fool-proof. Most people downloaded music illegally with no negative consequences. Then you have a handful who got hit with lawsuits, even though they were nobodies compared to the giant music industry. If you were to talk to any of those people about their experiences, most would say it is fine. If you did a bit more research you would find out the odds are pretty good that it is ok, but that you should be aware there is a small chance of it not being ok.