Legal Review & Compliance
Review the drafted smart contract terms for accuracy. Confirm compliance with Shariah principles and regulatory standards before proceeding to finalization.
Next: Final Approval & Deployment
description Draft Contract Document
Mudarabah Investment Agreement
Generated on October 24, 2023
1. Definitions and Interpretation
This Mudarabah Agreement ("Agreement") is made this day between House of Wealth Capital ("Rabb-ul-Maal") and Green Sukuk Ventures Ltd. ("Mudarib"). The parties agree to enter into a partnership where capital is provided by the Rabb-ul-Maal and expertise and management is provided by the Mudarib.
2. Profit Sharing Mechanism
The Net Profit generated from the venture shall be distributed between the parties in accordance with the following pre-agreed ratio:
- Rabb-ul-Maal (Investor): 60% of Net Profits.
- Mudarib (Manager): 40% of Net Profits.
* This ratio is fixed for the duration of the contract term unless amended by mutual written consent.
3. Risk Allocation & Loss Bearing
In the event of a financial loss (Khusarah), the loss shall be borne solely by the Rabb-ul-Maal (Capital Provider), limited to the extent of the capital contribution, provided that such loss is not due to the Mudarib's negligence, misconduct, or breach of contract.
4. Term and Exit Strategy
The term of this investment is 5 Years (60 Months) from the date of deployment. Exit options include secondary market liquidation via the HoW Exchange or maturity redemption.
Shariah Compliant
Verified by D-8 SSB
This contract structure adheres to AAOIFI Shariah standards for Mudarabah partnerships.
Key Compliance Parameters
gavel Regulatory Check
Malaysia SC
Framework Compliant
DIFC (Dubai)
Cross-border check pending