Defines the Shariah-compliant financial product framework for Lux Network. All DeFi protocols on Lux offer Shariah-compliant modes that avoid riba (interest), gharar (excessive uncertainty), and maysir (gambling). The framework implements four core Islamic finance structures: Murabaha (cost-plus financing), Musharakah (partnership), Sukuk (asset-backed certificates), and Takaful (cooperative insurance).
The ShariahRegistry contract maintains a classification of on-chain assets and protocols:
contract Murabaha {
function createSale(address asset, uint256 costPrice, uint256 markup, uint256 installments) external;
function payInstallment(uint256 saleId) external payable;
}
The seller discloses the cost price and markup. The buyer pays in installments. No interest -- the profit is a fixed markup agreed at contract creation.
Partners contribute capital to a venture. Profits are shared by pre-agreed ratios; losses are shared proportionally to capital contribution. Implemented as an ERC-4626 vault with custom profit/loss distribution.
Asset-backed certificates representing ownership in a tangible asset or project. Unlike conventional bonds, sukuk holders share in the asset's returns, not a fixed interest rate. Implemented as ERC-1155 tokens with an underlying asset reference.
A cooperative pool where members contribute to a fund. Claims are paid from the pool. Surplus is distributed back to members. No underwriter profit -- the operator charges a management fee (Wakalah model).
An on-chain ShariahBoard multisig (3-of-5 scholars) must approve:
1. Shariah compliance is advisory, not enforced at the EVM level. Users can bypass by interacting directly with contracts.
2. The ShariahBoard multisig keys are held by independent Islamic finance scholars. No Lux team member is a signer.
3. Asset classifications can change (e.g., a company's business mix changes). The registry supports reclassification with an event trail.
4. The framework does not replace a formal Shariah audit. It provides the on-chain infrastructure for compliant products.
github.com/luxfi/standard/contracts/compliance/ShariahRegistry.sol |github.com/luxfi/standard/contracts/islamic/Murabaha.sol |Copyright (C) 2022-2026, Lux Partners Limited. All rights reserved.
Licensed under the MIT License.