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The question

What is the ruling on working with a merchant who pays monthly 120 to 150 dinars for 1000 dinars, and in case of loss, deducts 5% from the capital?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

Two conditions are stipulated for the permissibility of the aforementioned transaction: First, the share of the capital owner from the profit must be a percentage, and if there is no profit, he gets nothing. Second, the capital is not guaranteed by the manager (mudarib) unless there is transgression or negligence. Since the capital owner only bears 5% of the loss, this is a void condition that invalidates the contract.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
86707
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy