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Perpetual Sukuk

Islamic capital market instrument — ijarah-style profit distribution + embedded everlasting call option at ι=0 (AAOIFI SS-17)

How It Works

What the Baraka Perpetual Sukuk actually is

This is not a bond and not a fixed-income product. It is an Islamic investment certificate that gives you a real, risk-sharing stake in an underlying asset. There is deliberately no fixed interest rate — a predetermined return on capital is riba al-nasi'ah, the exact thing this protocol exists to remove. Your return is variable and comes from two sources, and you genuinely share in the asset's ups and downs (mudarabah).

1 · The κ-premium distribution (while you hold)

While the asset trades at a premium to spot, the issuer pays you the convergence premium π = κ·(f − X)·dt. While it trades at a discount, the flow reverses and you pay. It is bidirectional and variable — never a fixed coupon. κ is the live convergence intensity from the oracle; f is the perp/mark price, X the spot.

2 · Asset-value redemption (at maturity)

At maturity you receive the fair asset value, X_τ / X₀ × your subscription. If the asset rose, you redeem above par; if it fell, you redeem below par. There is no principal guarantee — that is what makes this genuine risk-sharing rather than a loan.

Worked example

You subscribe 1,000 USDC when the asset index is X₀ = 50,000.
• If at maturity the asset is 60,000 (+20%), your redemption ≈ 1,000 × 60,000/50,000 = 1,200 USDC, plus any κ-premium earned along the way.
• If the asset is 40,000 (−20%), your redemption ≈ 1,000 × 40,000/50,000 = 800 USDC. You bore the loss — this is mudarabah, not a deposit.

Why it is Shariah-compliant. Three reasons: (1) no fixed return on capital — both return components are variable and market-driven; (2) real risk-sharing — you own a stake in the asset and share its gains and losses (mudarabah); (3) the interest parameter ι = 0 everywhere — no interest term enters any pricing. The mechanism follows our published proof in Paper 2, “From Perpetual Contracts to Islamic Credit” (SSRN 6322858), which derives the sukuk price as P = E[X_τ] and shows the return is “risk-sharing (mudarabah-compatible) rather than a fixed return on capital.” Structured under AAOIFI Shariah Standard No. 17 (investment sukuk).

How to use this page. Subscribe to a sukuk with USDC (you approve, then subscribe — your entry index X₀ is recorded). Claim Premium any time to collect positive κ-premium accrued so far (a negative balance in discount regimes is carried and netted at the end). Redeem after maturity to receive your asset-value payout. The “κ-premium” figure in your portfolio is signed — green when the asset has been at a premium, red at a discount.

Active Sukuks

Subscribe to Sukuk

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Risk-sharing (mudarabah): there is no fixed rate. Your subscription earns the variable κ-premium distribution (π = κ·(f−X)·dt — bidirectional) while held, and at maturity you receive the fair asset value X_τ/X_0 × principal — which can be above or below par. Returns are not guaranteed; you share in the asset's upside and downside. ι=0 throughout — no riba.

Shariah Compliance — AAOIFI Standard 17

Sukuk represent undivided ownership in the underlying asset, NOT interest-bearing debt — there is no fixed return on capital. The distribution is the variable κ-premium π = κ·(f−X)·dt (Paper 2, SSRN 6322858): the holder receives it when the asset trades at a premium and pays it at a discount. Redemption is the fair asset value X_τ/X_0 × principal, so the holder shares both upside and downside (mudarabah). Interest parameter ι=0 throughout — no riba enters the pricing.