ι = 0 — Verified On-Chain

Shariah Compliance Proof

Every value on this page is read live from our verified smart contracts on Arbitrum Sepolia. No trust required — verify it yourself on Arbiscan.

Live On-Chain Verification

Mark Price (OracleAdapter)—

Index Price (OracleAdapter)—

F computed = (Mark−Index)/Index—

F on-chain (FundingEngine.getFundingRate)loading...

ι (interest parameter)0 ← hardcoded constant

Insurance Fund—

Values refresh every 10–15 seconds from Arbitrum Sepolia (chainId 421614).

Islamic Finance Principles

01No Riba (ι = 0)ENFORCED

The funding rate formula F = (Mark − Index) / Index contains no interest floor or riba component. The parameter ι is hardcoded to zero in FundingEngine.sol and cannot be changed — it is a constant, not a variable. This is proven by Ackerer, Hugonnier & Jermann (2024), Theorem 3 / Proposition 3: when r_a ≈ r_b (both parties use the same stablecoin), the no-arbitrage condition uniquely determines ι = 0.

02No Maysir (Excessive Speculation)ENFORCED

Maximum leverage is hardcoded as MAX_LEVERAGE = 5 in ShariahGuard.sol (a constant, not a settable parameter). Every position open call passes through validatePosition() which reverts if leverage > 5. Utility-focused framing: the protocol is designed for hedging, not pure speculation.

03No Gharar (Uncertainty / Hidden Risk)ENFORCED

All 8 contracts are verified on Arbiscan — source code is public. No proxy contracts, no upgradeable contracts (OZ upgradeable deliberately NOT installed). No admin backdoors. The only governance is a 48-hour timelock with Shariah board veto. All fees, liquidation parameters, and funding mechanics are visible on-chain.

04Takaful Insurance FundPARTIAL

An on-chain insurance fund holds collateral to cover bad debt from insolvent positions. 50% of all liquidation penalties flow to this fund. No yield is generated on idle capital (no staking or lending of insurance funds). This is the seed of a full Takaful structure planned for v2.

05Halal Asset ApprovalIN PROGRESS

ShariahGuard.sol requires each market asset to be approved by the Shariah board multisig. The approval stores an IPFS hash pointing to the fatwa document. Currently BTC is approved on testnet. ETH and gold markets pending formal board review.

Mathematical Proof (Ackerer et al. 2024)

Grand Valuation Equation (Ackerer Theorem 3):

F = (r_a − r_b − ι) × x + (Mark − Index) / Index

For stablecoin-margined perps (USDC):
r_a ≈ r_b (both legs use USDC, same borrowing cost)
∴ r_a − r_b = 0
∴ F = −ι × x + (Mark − Index) / Index
No-arbitrage + Proposition 3 uniquely determines ι = 0

∴ F = (Mark − Index) / Index [no riba term]

Reference: Ackerer, D., Hugonnier, J., & Jermann, U. (2024). Perpetual Futures Pricing. Swiss Finance Institute Research Paper. The full paper is available on SSRN. The BarakaDapp implementation follows Theorem 3 and Proposition 3 precisely — see NatSpec comments in FundingEngine.sol.