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The Ijarah Sukuk Smart Contract: A Simple Guide​

Welcome to our simple and friendly guide on how our product, the Ijarah Sukuk Smart Contract, works. It's like a special agreement that helps people use their digital money in a way that's fair and follows Islamic rules. Let’s look at how it helped Ahmed and Sara.

Ahmed and Sara's Story​

Ahmed wants his digital money (USDC) to grow, but it has to be in a way that fits his religious beliefs. Sara has some special digital coins (Islamic Coin) and needs some cash without losing her coins’ future value. They both use our smart contract for a solution that respects their needs and beliefs.

How Does It Work?​

1. Sara's Promise (Marabaha):​

  • Sara's Part: She uses her $1000 worth of Islamic Coins as a promise. It's like saying, “I have something valuable to back up our deal.”
  • Outcome: A deal based on something real and valuable.

2. Renting Agreement (Ijarah Contract):​

  • Ahmed's Help: He gives $500 in USDC, like lending something valuable (Maal).
  • The Fee: They agree on a $50 fee for this service (Ujrah).
  • Outcome: A fair rental deal that fits Islamic rules.

3. Sharing the Ups and Downs (Musharakah):​

  • Riding the Wave Together: They know Sara’s coins might go up or down in value.
  • Smart Plan: The contract helps avoid quick decisions, sharing the risk.
  • Outcome: Both share the journey of the coin’s value changes, like partners.

4. Fair Earning (Ghunm Bil Ghurm):​

  • Earning and Risk: Ahmed’s $50 fee depends on Sara paying back the $500.
  • Outcome: Profit and risk are connected, just like fair play.

5. No Unfair Gains (Riba-Free):​

  • The $50 Fee: It’s just a fee, not extra money like interest.
  • Outcome: The deal stays true to Islamic rules against unfair gains.

6. Shared Risk in Value Drop (Mudarabah):​

  • If the Coin Drops: Sara won’t lose her coins right away.
  • Shared Risk: Both Sara and Ahmed share the risk if the coin’s value drops.
  • Outcome: A shared approach to ups and downs, respecting market changes.

Conclusion: Simple and Fair​

Ahmed and Sara found a solution that was simple, fair, and respectful of their beliefs. This story shows how our Ijarah Sukuk Smart Contract is more than just a tool – it's a way to make sure everyone’s needs and beliefs are respected in the digital money world. It’s like having a fair, understanding friend in the world of finance.