Shariah-Compliance

In the name of Allah, the most compassionate, the most merciful

The Islamic Shariah view on establishing the “HAQQ Chain” network and the issuance of its own currency “ISLM”

Praise be to Allah. Prayers and peace be upon our Prophet, Muhammad, his family, and all of his companions, and those who followed them with goodwill until the day of judgment, and then:

The Shariah Authority formed for the purpose of giving the legitimate Islamic view on establishing the “Haqq Chain” platform (“The Platform”) and issuing its currency known as “ISLM”, has held a number of meetings until 22/01/2022 A.D. (19/06/1443 Hijri), to review the White Paper of The Platform which is a White Paper in Arabic and English that lists The Platform's blockchain-based features, the technical framework used to program “Haqq Chain” platform, the objective of The Platform and the mechanism used to issue and distribute its currency “ISLM”, as well as information on the Evergreen DAO Endowment Fund to be established on The Platform.

After reviewing a detailed presentation of the platform's workflow by its administrators, and their answers to the Authority's questions on this matter, that included the following:

After thorough review of the structure of the platform and the white paper, and what has been shown to the Authority from the blockchain technology and the technical framework used in programming “Haqq Chain” platform that is a safe and tested technology through which financial transactions are conducted and users' funds are protected. After reflecting on the types of currencies currently available, which are summarized in the following types:

The Authority has seen that these four types of currencies are considered significant financial assets whose value changes as supply and demand change, and that each of these currencies has its own legitimate provisions, which are not subject to consideration by the Authority, and that the “ISLM” currency falls under the second type mentioned above, and the consideration of the Shariah Authority is strictly limited to the currency of “ISLM” disregarding other currencies.

After studying, considering, and discussing, the Authority decided the following:

First: There is no objection to establish the “Haqq Chain” Platform and issuing the “ISLM” based on the following measures:

Second: The Authority confirms that this view is specific to the white paper, which includes details of establishing the “Haqq Chain” Platform, the issuance of “ISLM” currency and establishing the “Evergreen DAO Endowment Fund” excluding other smart products and contracts to be built on the platform, and that the relevant Authority should ensure that this platform was established in accordance with this Islamic Shariah opinion, and that the entity must obtain the Shariah Authority approval for new smart products and contracts before launching them.

Third: This opinion concerns the legitimate aspect, and the Authority does not express an opinion on any legal aspects, economic feasibility, or the acceptance of the judicial authorities of this view, and the concerned parties are responsible for verifying those aspects.

Fourth: The Authority warns that investing in cryptocurrency products is suitable only for qualified investors, because of the risks involved, and needs expertise, follow-up and accurate knowledge of these products, and those who deals with these must be financially abundant and has surplus to their basic needs and has access to the complex technology that form the basis of cryptocurrencies and the like.

The Authority recommends the appointment of an independent forensic reviewer to verify the platform's compliance with the measures contained in this document and its annexes.

Praise be to Allah, the Lord of the Worlds; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.