Testnet Live — Arbitrum Sepolia
Baraka

The World's First
Islamic Financial Protocol

Four Shariah-compliant financial products on one protocol — perpetual futures, sukuk, takaful insurance, and credit default swaps — all powered by a single mathematical engine with ι = 0.

No riba. No gharar. No maysir. Proven in Ackerer, Hugonnier & Jermann (2025, Mathematical Finance).

That engine is κ (convergence intensity) — the rate at which a real event resolves (a default, a drought, a price converging). It is not interest renamed: where the interest rate r charges for the mere passage of time, κ prices what actually happens. Learn how κ replaces interest →

Open TradeShariah Proof
0
Interest Parameter (ι)
Proven — Ackerer et al. (2025)
21
Smart Contracts
All verified on Arbiscan
759/759
Tests Passing
21-pass audit, 302 findings fixed
9
SSRN Papers
Working papers · SSRN
Protocol Suite

Four Products. One Framework.

Every product uses the same ι = 0 everlasting option formula — no interest rate anywhere in the stack.

Layer 1
Live Testnet

Perpetual Futures DEX

World's first mathematically-proven halal perpetual futures exchange. On-chain CLOB with cross-margin subaccounts. Funding formula with ι = 0 — no interest floor, no riba. Max 5× leverage enforced immutably.

ι = 0 from Theorem 3On-chain CLOB (price-time priority)Max 5× leverage — immutableCross-margin subaccounts
MatchingEngine.sol
Layer 2
Testnet

Perpetual Sukuk

Asset-linked Islamic investment certificate. The return is the variable κ-premium π = κ(f − X)dt — no fixed rate — and redemption tracks the fair asset value X_τ/X_0. Risk-sharing (mudarabah), not a fixed return on capital.

Variable κ-premium distribution (bidirectional)Asset-value redemption X_τ/X_0Risk-sharing — no principal guaranteeι = 0 · no riba · AAOIFI Std. 17
PerpetualSukuk.sol
Layer 3
Testnet

Takaful — Mutual Insurance

On-chain takaful pool priced with the everlasting put. Tabarru contribution is actuarially fair. 10% wakala fee to operator per AAOIFI Std. 26.

Fair tabarru via Ackerer Prop. 610% wakala — AAOIFI compliantKeeper-controlled claimsSurplus to charity
TakafulPool.sol
Layer 4
Testnet

iCDS — Islamic Credit Default Swaps

First Shariah-compliant CDS. Protection seller deposits full notional — no naked positions. Premium is dynamic and market-implied, not a fixed riba rate.

Dynamic put-priced premiumFull collateral requiredOn-chain oracle breach triggerQuarterly settlement cycle
iCDS.sol
Core Mathematics
Proposition 6 — Ackerer, Hugonnier & Jermann (2025, Mathematical Finance)
F = (Mark − Index) / Index
Π(x,K) = [K1−β / denom] · xβ
ι = 0— no interest term

One formula — zero interest — powers perpetual futures, sukuk, takaful, and credit protection. The interest parameter ι is mathematically separable from convergence (t = 59.95, p < 10−300).

Protocol Infrastructure

The Foundation

Everlasting Option Engine

The mathematical core powering all 4 layers. Implements Ackerer Proposition 6 at ι = 0. One formula prices everything — tabarru, sukuk upside, CDS premium — without any interest rate.

κ-Signal Oracle

Real-time convergence intensity signal replacing the interest rate r. Riba-free, market-implied, on-chain observable. Foundation for all credit pricing across Layers 2–4.

Governance Token (BRKX)

100M fixed supply. Hold-based fee discounts from 5 bps to 2.5 bps. Governance votes weighted by balance. No lock-up required.

Shariah Registry

On-chain enforcement of Islamic finance rules. MAX_LEVERAGE = 5 is an immutable constant. Asset whitelist requires dual approval: DAO + Shariah board multisig.

Shariah Compliance

Every Prohibition Addressed

Riba (Interest)
ربا
ι = 0 hardcoded — no interest term anywhere in the protocol stack
Gharar (Uncertainty)
غرر
Credit events are verifiable on-chain oracle breaches — no committee ambiguity
Maysir (Gambling)
ميسر
Max 5× leverage is immutable. CDS sellers must post full notional collateral
Qabdh (Possession)
قبض
USDC, PAXG, XAUT — real-asset backed collateral. No rehypothecation
Academic Research

9 Papers. All on SSRN.

Every design decision is grounded in original mathematics — nine working papers on SSRN. The six core protocol papers are below, alongside the κ-Standard, κ-DSGE, and κ-Framework monetary papers.

Paper 1SSRN 6322778↗

The Interest Parameter in Perpetual Futures

39,406 funding intervals — ι=0 funding distributions separate sharply from interest-bearing CEX venues (Cohen's d = 0.78)

Paper 2SSRN 6322858↗

From Perpetual Contracts to Islamic Credit

Stopping time θ_t ≡ credit event τ at ι=0 — enables riba-free pricing across sukuk, takaful, and credit

Paper 2ASSRN 6322938↗

The κ-Yield Curve from Sovereign Sukuk Data

Real USD sukuk (273 bonds, 95 issuers, 17 countries): a riba-free yield curve — median κ̂ ≈ 1.9%/yr, credit-ordered (0.9% AAA → 5.6% unrated), upward-sloping. Measured, not benchmarked to SOFR.

Paper 2BSSRN 6323459↗

κ-Rate Stochastic Hazard: Agricultural Takaful

On real USDA crop data, the κ-fair premium (9.6%) tracks realised loss-cost (7.9%) — a 0.82 loss ratio. Riba loading ≈ 7.4% at an 8% discount rate.

Paper 2CSSRN 6323519↗

Islamic CDS on Smart-Contract Infrastructure

Mean riba premium 109 bps across 1,176 country-periods. Full lifecycle ~862k gas — sub-cent on Arbitrum L2 (gas-price dependent).

Paper 3SSRN 6323618↗

Integrated Simulation Framework for DeFi

0 insolvency events, Nash leverage 2.72×–3.28× (below 5× cap), net transfer ≈ $0 confirming ι=0

Start Trading — Halal, Proven, On-Chain

Baraka Protocol is live on Arbitrum Sepolia testnet. Connect your wallet and open your first Shariah-compliant perpetual position.

Open TradeRead the Proof