What is meant by the jurists' saying: "The Mudarib (investor/entrepreneur) is not entitled to profit until the capital is recovered," and does this mean the obligation to recover the full capital before distributing any profits, taking into account how to deal with business expenses and the purchase of new goods?

The agreed-upon principle among jurists is that there is no profit in mudarabah (profit-sharing partnership) until the capital is secure. However, using the money before the capital is fully recovered is not prohibited. Therefore, it is permissible to distribute the apparent profit, provided there is an agreement and it is considered an advance payment, with the calculation being re-evaluated after the capital is fully recovered. Losses are offset by subsequent profits. If the loss exceeds the profit upon liquidation, it is deducted from the capital, and the mudarib (working partner) does not bear it unless his transgression or negligence is proven. The mudarib is entitled to his share of the profit when it appears, but it is an unstable ownership held back as a safeguard for the capital. It becomes confirmed upon division, either by actual or constructive liquidation, and it is permissible to distribute profit as an advance payment. Business expenses are paid first from the profit; if there is no profit, then from the capital. If there is no agreement on distribution before the capital is fully recovered, neither party has the right to compel the other to it.