1. Purpose

This document outlines the principles and framework applied by Modal Assets in managing Shariah-aligned global investment portfolios. It is intended to provide transparency regarding ethical considerations and value-based investment practices.

2. Shariah-Aligned Approach

Modal Assets adopts a Shariah-aligned investment approach focused on ethical capital deployment, risk sharing, and real economic activity. Investments are structured to align with broadly accepted Shariah principles where applicable.

This framework reflects internal policy and operational intent and does not constitute a religious ruling or formal certification.

3. Permissible Investment Activities

Capital is deployed into businesses and activities that demonstrate:

  • legitimate commercial purpose,

  • identifiable revenue-generating operations, and

  • alignment with ethical business practices.

The Platform avoids direct involvement in activities commonly considered impermissible under Shariah principles, including but not limited to:

  • gambling and speculative betting,

  • interest-based lending activities,

  • alcohol, tobacco, and illicit substances,

  • pornography or exploitative industries.

4. Profit Participation Structure

Returns distributed to participants are derived from profit-generating activities, not from interest-based mechanisms.

The Platform earns through profit participation and management fees on realized profits, aligning incentives between the Platform and participants.

5. Risk Sharing and Accountability

Participants acknowledge that profits and outcomes depend on underlying business performance. Capital deployment involves commercial risk, and returns are not fixed or guaranteed.

This risk-sharing approach aligns with Shariah principles emphasizing accountability, transparency, and fairness.

6. Global Portfolio Exposure

Modal Assets may deploy capital across multiple jurisdictions and sectors to support diversification and operational resilience. All deployments are subject to internal screening and ongoing monitoring.

7. Oversight and Review

Investments are reviewed internally to ensure continued alignment with ethical and Shariah-aligned considerations. Where concerns arise, positions may be adjusted or exited.

8. Transparency and Disclosure

Participants are provided with general information regarding portfolio structure and investment approach. Certain operational details may remain confidential for strategic and commercial reasons.

9. No Guarantee or Religious Certification

This framework does not represent:

  • a guarantee of Shariah compliance,

  • an official fatwa, or

  • certification by a religious authority.

Participants are encouraged to seek independent religious or professional advice if required.

10. Continuous Improvement

Modal Assets remains committed to refining its ethical and Shariah-aligned practices as part of its broader governance and investment discipline.