UMA is a platform to build a new Decentralized Finance (DeFi) project on their protocol. As we know, DeFi project most probably will involve derivatives, conventional loans, and other prohibited investments. After some research on their protocol, most of the projects are derivatives and lending financial products that contain riba', gharar and maysir. UMA acts as the head of DeFI project and clearly, it is Non-Shariah Compliant.
| Category | Details | Status |
|---|---|---|
| Legitimacy | Not regulated by any countries or regulatory bodies. The project has a clear roadmap and genuine product on the blockchain, while the token/coin has a fundamental underlying value that allows it to be categorized as "Mal" | Passed |
| Project | A platform that enables anyone to build decentralized financial (DeFi) products. In Uma, it involves derivatives and other prohibited instruments which contain riba', gharar and maysir. | Failed |
| Financials | The token is not backed by any equity, thus there is no financial screening on this token. | Passed |
| Token | Involve in Uma ecosystem which involves derivatives and other prohibited instruments | Failed |
| Staking Method | No staking | Failed |
Read the source document and verify project fundamentals.