Biokript: Shariah Compliant

December 23rd, 2022 at 7:44 pm UTC · 2 min read

In Islamic financial law, Mudarabah is a partnership concept. With Mudarabah, one party provides the capital and the other provides labor or expertise. Both the investor (rabb al-mal) and the manager (mudbrib) share profits.

Biokript offers users an opportunity to gain profit on the exchange by holding our Biokript token. Unlike other tokens where profit is distributed through interest (Riba) or ponzi schemes, this kind of profit-sharing is ethical and Shari’a compliant. With the Biokript token, the user is investing in the exchange and its principles. The Biokript team provides the expertise and labor by operating the platform and engaging in management. In return, the user receives a portion of the profit.

Since token-holders are receiving trading revenues, it is not sustainable to manipulate trading volume, as that would dilute the value of the coin and cause investors to withdraw. This ensures the authenticity and transparency of Biokript’s trading.

Biokript is also unique in that it does not offer options trading, leveraging, and itself does not engage in leveraging. Many crypto- market behaviors are indeed gambling (maysar) in the Shari’ah. While gambling is not in order to own crypto-assets, it must be consciously avoided.

Gambling often occurs with unproven crypto-tokens, even if the underlying business is not engaged in any haram activity. Many tokens have no functional purpose or objective value and their underlying businesses do not have positive cash-flow or revenues. They have increasing debt or even are massively overleveraged. If there is no underlying value to the asset and a person simply speculates that it will increase in value, this would technically meet the criteria of gambling.

FTX was a leading cryptocurrency exchange which specialized in derivatives and leveraged options. After its highly public collapse, FTX currently has over $8 billion of liabilities which it cannot pay – as well as over one million creditors which it owes.

Biokript is the solution to over-leveraged centralized exchanges.

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