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The question

Is a project in which the capital is from me, and the profit is distributed according to pre-determined percentages (10% for me, 10% for another, and the rest for a third), and in which the bearing of loss was not discussed, considered usury (riba)? And how can it be corrected if it is?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

If the phrase "a project with a guaranteed 100% profit" is intended to express confidence in the project's success, rather than stipulating a guaranteed specific profit or capital, then there is no issue with it. Loss in Mudarabah (profit-sharing partnership) is incurred on the capital, and what is prohibited is stipulating a guarantee of the capital. Scholars have differed on whether the Mudarabah becomes void by stipulating a guarantee of capital, but the preponderant view is that the condition is void, but the contract itself remains valid.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
170552
Imported
Translation status
Source text, unreviewed
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