Halal Methodology

Clear rules that set boundaries for how AXM participates in on-chain markets under Islamic finance.

Participation avoids interest-based income and debt-like fixed obligations.

Speculative structures or exposure to unpriced risk are intentionally excluded.

Outcomes arise from market participation, not from guaranteed or predetermined claims.

Structures, risks, and outcomes are disclosed clearly and without concealment.

Methodology Process

Each structure is first classified by its economic nature. This classification determines which Shariah considerations apply and frames the subsequent review.
Cashflows are assessed to determine whether outcomes arise from market participation or from a debt-like claim. Structures where returns resemble fixed or owed obligations do not proceed.
Mechanics are reviewed for interest-based features, predetermined returns, or capital guarantees. Structures resembling lending for a promised gain are considered misaligned.
Risk drivers are evaluated for speculative reliance, leverage-dependent outcomes, liquidation sensitivity, or opacity. Structures requiring excessive uncertainty or gambling-like payoff profiles are excluded.
Participation is assessed against ownership, possession, and deliverability requirements. Structures relying on synthetic exposure or selling what is not owned are considered misaligned.
Rights, obligations, and loss mechanics are reviewed for clarity and fairness. Structures with ambiguity around entitlements, responsibilities, or risk-bearing do not proceed.
Structures are reassessed when material changes occur, including protocol mechanics, incentives, governance, or risk profile. Continued participation requires ongoing alignment.

Shariah Governance

Shariah determinations are made through a defined internal governance function responsible for applying the methodology, documenting decisions, and maintaining consistent, reviewable standards across structures.
Where defined criteria warrant, external scholarly review or independent advisory input is incorporated to challenge assumptions and reinforce alignment.
Shariah alignment is reviewed on a scheduled basis and reassessed when material changes occur, including protocol upgrades, incentive changes, governance modifications, or new mechanics.
Each determination is supported by documented analysis, including screening notes and decision rationale, ensuring traceability and accountability over time.

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