Whitepaper: For Regulatory and Scholarly Review
This whitepaper is for information only and does not constitute an offer to sell, a solicitation to buy, or advice. ShareMatch is not a broker‑dealer or investment adviser. Performance Index Units are not affiliated with any club or league. Prospective participants should seek independent legal, financial, and Shariah advice. Past performance is not a guide to future results.
The rapid maturation of blockchain infrastructure presents a rare opportunity to design financial instruments that fully align with the principles of Islamic jurisprudence. This whitepaper sets out the operational, contractual, and Shariah foundations of ShareMatch, a platform that issues Performance Index Units, each representing a participant’s clearly defined pro-rata share of an underlying pool of assets. Their value is determined solely by a pre-disclosed, deterministic performance formula anchored in real-world data, avoiding discretionary pricing or speculative structures.
The platform is structured upon the contract of Wakala (agency), where ShareMatch acts as Wakil on behalf of the participants. This model, as affirmed in the Shariah Supervisory Board’s Fatwa review, ensures that the units constitute a legitimate haqq mali (property right) and that the system systematically avoids riba, maysir, and gharar. The document also outlines risk controls, oracle integrity safeguards, governance mechanisms, and ongoing Shariah oversight, illustrating how ShareMatch can operate as a permissible, transparent, and ethical alternative investment vehicle.
﴿إِلَّا أَنْ تَكُونَ تِجَارَةً عَنْ تَرَاضٍ مِنْكُمْ﴾ [النساء ٤:٢٩]
“...except when it is trade conducted by mutual consent among you.” This principle of tijārah ʿan tarāḍin underpins the platform’s focus on clarity, disclosure, and genuine asset-based participation.
Three components: Units, Vault, Formula. Click each tile for details.
Perpetual, whole‑unit issuance at launch, transfer‑restricted within a KYC venue, redeemable for USDT equivalent NAV.
Holds USDT, mints on deposit and burns on redemption, transparent accounting, NAV updated at rebalance windows.
Deterministic, disclosed, and Shariah‑approved. Sole driver of NAV changes outside trade flows.
ShareMatch markets are implemented as closed-ended issuance windows. Each market corresponds to a defined event cycle (such as a match-week, month, or season). Once the issuance window closes, no new tokens may be minted for that specific market.
Although ShareMatch tokens are perpetual digital certificates, the markets in which they are issued are strictly time-bounded. The token continues to exist after the market ends, but its economic exposure is fixed at the moment of issuance and tied exclusively to the defined market’s expiry terms. This ensures all participants enter under identical informational conditions, preventing timing-based speculation and preserving Shariah fairness and transparency.
The smart contract defines the issuance price, measurement methodology, market expiry, redemption calculation, and token persistence after market close. Once deployed, the smart contract terms cannot change. The token represents a fully specified contractual right (haqq mali) from the moment of issuance, with fixed obligations and a predetermined final calculation method.
The issuance price for each closed-ended market is fixed and disclosed at the start of the market window. No intramarket repricing occurs.
The performance index is used solely as a measurement tool and never as a pricing mechanism. The index does not influence secondary market pricing, nor does it alter the contractual obligations embedded in the token. All economic parameters are locked at issuance and remain unchanged throughout the market lifecycle.
While markets are closed-ended, ShareMatch tokens themselves are perpetual digital assets. The perpetual nature refers to the token’s existence rather than ongoing entry conditions or variable pricing.
Because each token represents a fully defined contractual entitlement with fixed issuance terms, fixed measurement methodology, and a predetermined redemption mechanism, it qualifies as a Shariah-recognised category known as haqq mali. This classification is accepted in Islamic jurisprudence as a legitimate form of Haqq mali (financial right) capable of being held, transferred, inherited, and traded.
ShareMatch supports a regulated secondary market for token transfers.:
Therefore, secondary market activity constitutes the transfer of ownership of a fully defined Haqq mali and does not modify the token’s contractual terms or introduce speculation.
Follow the lifecycle. Click steps to update the panel.
Wakala (Agency Contract). ShareMatch operates as a Wakil, an appointed agent managing participant funds within a fully disclosed, rule‑based mandate. All activities occur within a non‑discretionary, deterministic structure that avoids prohibited ambiguity (gharar) and speculation (maysir).
Wakil (The Agent). As Wakil, ShareMatch executes a predefined operational strategy only. The Wakil does not guarantee returns or principal, and earns only a permitted, fixed Ujrah fee. This matches the Fatwa’s approval of the agency structure.
Haqq Mali (Legitimate Property Right). Each Performance Index Unit represents a fully specified and ownable haqq mali: a contractual right tied to the participant’s share of the underlying vault assets and the deterministic performance formula. Because this right is fully defined and transferable, its exchange is valid and distinct from speculation.
The Fatwa confirms that the units constitute a Shariah‑permissible Haqq mali (financial right) whose value is derived solely from transparent, verifiable rules, aligning with the principles of fairness, clarity, and mutual consent (tijārah ʿan tarāḍin).
For Saudi users, ShareMatch complies with the Kingdom’s E-commerce Law: Arabic-language Terms of Use, clear refund/reversal policy, transparent pricing, complaint-handling processes, and locally accessible customer support.
A robust governance framework, centered on proactive risk management and vigilant Shariah supervision, is fundamental to the platform's integrity. All operations are subject to review by an independent Shariah Supervisory Board.
The platform is overseen by an independent Shariah Supervisory Board, chaired initially by Mahmoud Zoair. Its mandate is to approve all contracts (`Wakala`, `Wa'd`), formulas, and disclosures.
The regulatory classification of digital assets is subject to evolution.
Mitigation: KYC-gated access, conservative and comprehensive risk disclosures, a modular architecture designed for regulatory adaptability, and ongoing engagement with local counsel.
Potential for unforeseen vulnerabilities in smart contracts or failures in key management.
Mitigation: Multiple third-party audits, adherence to audited token standards (ERC-4626), an emergency pause function, use of institutional-grade custody solutions (HSM or MPC), and strict separation of roles.
The initial NAV calculation ahead of the commencement of the relevant index relies on accurate data from external sources.
Mitigation: Use of a multi-signature oracle system (2-of-3 signers), a public dispute window with clear evidence rules, sourcing from multiple reputable data providers, and pre-announced rebalancing windows. This ensures the index is never affected by incorrect, manipulated, or delayed inputs, preventing Gharar.
Potential for liquidity provider concentration or spread manipulation.
Mitigation: Encouragement of multiple, independent liquidity providers; transparent on-chain `Wa'd` escrow; publicly disclosed market maker bounds; and a clear surveillance and sanctions policy.