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HalalCrypto

Shariah compliance

Not certified or endorsed. HalalCrypto is not certified or endorsed by AAOIFI, the Saudi Permanent Committee for Ifta, or any Saudi Islamic bank; Our methodology references their published rulings and standards as informational sources only. For personal religious guidance, please consult your own qualified scholar.

The halal screen before any trade

Every coin must clear our AAOIFI-aligned four-gate test before the bot can open a spot position.

The process draws on AAOIFI Standard 59, OIC Fiqh Academy guidance, Saudi Permanent Committee references, and Islamic-finance scholarship, then adapts those rules to on-chain assets. If you believe an asset has been misclassified, submit it for review; formal challenge outcomes are published.

Methodology basis:AAOIFI Standard 59 and an AAOIFI-aligned framework, cross-referenced with Saudi Permanent Committee for Ifta, leading Saudi Islamic banks, OIC Fiqh Academy resolutions on financial contracts, and the Maqasid al-Shari' ah principle of hifz al-mal (preservation of wealth). This framework is not a fatwa. Investors should consult qualified scholars for personal rulings.

01

First, exclude haram activity

Al-Baqarah 2:275–279; AAOIFI-aligned framework §4–5; OIC Fiqh Academy Resolution 86/3/D9; Saudi Permanent Committee fatwas on usury

Exclude riba, gambling, and haram industries. No asset with intrinsic value or yield derived from interest, or with material protocol-level exposure to prohibited industries, may enter the universe.

  • Riba: stablecoins collateralised by interest-bearing bonds (e.g. T-bill-backed stables) are excluded regardless of yield disclosure.
  • Riba: tokens with embedded interest rebasing (auto-compounding to an interest rate index) are excluded.
  • Gambling: any token powering casino, lottery, or sports-betting smart contracts is excluded.
  • Haram industries: adult content platforms, conventional finance fractional-ownership tokens, and insurance risk-pool instruments are excluded.
  • Business-activity threshold: 5% of network revenue — below this level, incidental exposure is accepted with public disclosure.
  • Re-assessment triggered on any major tokenomics, collateral, or governance change.

Fail = permanent exclusion. No tier override. The 5% threshold is reviewed annually.

02

Then, test financial reliance

AAOIFI-aligned framework §6; AAOIFI-derived debt-to-assets threshold (30%); leading Saudi Islamic banks guidance

AAOIFI-derived debt-to-assets threshold of 30%. Protocol-level financial leverage beyond this limit signals structural reliance on debt financing incompatible with Shariah principles.

  • Debt-to-assets ratio must remain below 30% — the AAOIFI-aligned threshold for on-chain protocol balance sheets.
  • DeFi governance tokens whose primary protocol revenue is interest income are excluded.
  • Tokens whose protocol treasuries are predominantly held in interest-bearing instruments exceed the ratio threshold and are excluded.
  • Ratio recalculated quarterly using on-chain treasury data and public financial disclosures where available.
  • Newly launched protocols without 12 months of on-chain history are quarantined pending sufficient data.

Fail = exclusion until ratio is remediated and verified at the next quarterly review.

03

Then, verify spot execution

Al-Baqarah 2:219; AAOIFI-aligned framework §4; Ibn Rushd, Bidayat al-Mujtahid; Saudi Permanent Committee on derivatives

Spot-only. Every order is a direct asset purchase — immediate, fully settled, no leverage. This gate eliminates gharar (uncertainty) and maysir (gambling-equivalent payoffs) at the execution layer.

  • Leverage of any kind is prohibited — not used, not offered, not referenced in any tier.
  • Futures, perpetuals, options, and all other derivatives are structurally excluded from every tier.
  • Margin trading introduces debt and position uncertainty simultaneously — excluded.
  • Only assets trading on Binance's spot market with immediate T+0 settlement are eligible.

Fail = structural exclusion. Cannot be overridden by tier risk appetite.

04

Finally, cap market risk

Maqasid al-Shari'ah principle of hifz al-mal; AAOIFI-aligned risk controls; public liquidity disclosures

A coin can pass the religious screen and still be too thin or too concentrated to trade responsibly. Liquidity and exposure caps protect wealth before execution.

  • Liquidity minimums by tier: Guarded Start $50M / Balanced Build $10M / Active Edge $5M 24-hour volume.
  • Single-asset concentration caps: Guarded Start 33% / Balanced Build 25% / Active Edge 20% of deployed capital.

Fail = pause until liquidity and concentration rules are met again.

Madhab-aware display

Same no-compromise screen, explained in the language users trust.

The verdict engine stays methodology-first. The selector changes explanation emphasis, not halal standards.

Hanafi explanation

Shows the conservative default: avoid ambiguous revenue, yield, leverage, and debt-linked exposure unless the source screen is clear.

Questions serious investors ask

Is this a fatwa?

No. HalalCrypto does not issue fatwas and makes no claim to religious authority. The screening methodology is an operational framework grounded in published AAOIFI standards and widely accepted fiqh principles. Individual investors are encouraged to consult their own qualified scholars.

What is AAOIFI?

The Accounting and Auditing Organisation for Islamic Financial Institutions — a Bahrain-based standard-setting body that publishes Shariah Standards used by Islamic banks worldwide. Our framework is AAOIFI-aligned: we draw on AAOIFI principles for digital asset screening, cross-referenced with Saudi Permanent Committee for Ifta and leading Saudi Islamic banks guidance. We do not claim formal AAOIFI certification.

How often are coins re-screened?

The full universe is reviewed quarterly. Individual assets are re-screened on any major protocol change (tokenomics update, governance change, underlying collateral change). High-risk events trigger immediate review.

Are stablecoins used?

USDT and USDC are used only as the quote asset for spot trades — they are never held as a return-seeking position. Their collateral composition is reviewed at each quarterly screen.

What happens to a coin that fails a gate mid-subscription?

Any open position in a coin that fails a screen is closed at the next market open at best available price. The customer is notified. No new positions are opened in that asset.

Illustrative screening run (example figures — not live data)

312

assets evaluated (example)

47

passed all screening layers (example)

4

independent screening gates

These are illustrative figures. Live screening data will be published quarterly once the public launch completes. Criteria are published above.

Ready to trade on a halal foundation?

Guarded Start is the easiest entry point: tight stops, liquid majors, and a narrow screened universe.

Start Guarded — $49 USD/mo

Spot-only; No leverage. No withdrawal access. Governed by DIAC.

How tier strategies work

All tiers use the same 4-gate halal screening. The difference between Guarded Start, Balanced Build, and Active Edge is the trading strategy — pair selection, position sizing, and stop-loss width — not the screen.

Guarded Start — capital-first controls

Safer pairs (BTC, ETH, top halal blue chips), smaller positions per trade, tighter stops (−5%). Designed to preserve capital first; growth follows from compounding small wins on highly-liquid coins.

Balanced Build — wider signal set

Mid-range pairs (top-20 halal coins), moderate position sizing, balanced risk/reward. Captures more of the halal universe while keeping drawdowns inside a tighter band than aggressive growth.

Active Edge — widest screened universe

Monitors more screened pairs with stricter alerts and wider stops (−8%). Built for experienced users who already know their risk budget.

Your bot trades with your full spot balance by default. You can pause the bot anytime in your dashboard.