of the project, whether in the prospectus or in the muḍārabah certificates issued on its basis.
(b) The subject matter of division is profit in its Sharīʿah sense—that is, the amount in excess of the original capital, not gross revenue or yield. The profit is determined either by actual liquidation or by valuing the project in cash; whatever exceeds the capital at the time of liquidation or valuation constitutes the profit to be distributed between the certificate-holders and the muḍārib in accordance with the contract.
(c) A profit-and-loss account must be prepared for the project, made public, and placed at the disposal of the certificate-holders.

7 – Profit is earned once it materializes, becomes owned upon liquidation or valuation, and becomes binding only upon distribution. For a project that generates periodic revenue or yield, that yield may be distributed; however, any sums paid to either party before liquidation (final settlement) are deemed advance payments on account.

8 – There is no Sharīʿah objection to the prospectus stipulating that, at the end of each cycle, a specified percentage be set aside—either from the certificate-holders’ share of profit when periodic liquidation occurs, or from their share of revenue or yield distributed on account—and placed in a special reserve to cover the risk of capital loss.

9 – Likewise, there is no Sharīʿah objection to the prospectus or the muḍārabah certificates containing a promise by a third party, whose legal personality and financial liability are separate from those of the contracting parties, to donate—without consideration—a specified amount to offset losses in a given project, provided that this undertaking is independent of the muḍārabah contract. In other words, fulfillment of the promise is not a condition for the contract’s validity or for its legal effects between the parties; therefore, the certificate-holders or the muḍārib may not invoke non-performance of the promise as grounds for invalidating the muḍārabah or to refuse to