For exchange tokens that act as the main token for trading purposes on the specific exchange, there are some tricky cases that need to be clarified. First, the token itself represents the ecosystem that gains profit from all transactions on the exchange that may include the Non-Shariah project Token. Second, the ecosystem benefits from derivatives contracts that clearly contrast with Shariah's ruling. We assume the same methodology of Stock Shariah screening that enacts the prohibition of stockbroking activities is applied in the same case. However, the usage of Exchange Token is commonly used to trade NFT or any other coin, thus we recommend not to hold Exchange Token for more than 30 days to avoid being involved in their ecosystem.
| 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 | UNUS SED LEO is a token for iFinex, the parent company of crypto exchange Bitfinex. iFinex operates online cryptocurrency trading platforms and provides other crypto-related services. One of the subsidiary project features is allowing qualified users to trade with up to 10x leverage, lending and borrowing. This activity is contra with Shariah. | Failed |
| Financials | The token is not backed by any equity, thus there is no financial screening on this token. | Passed |
| Token | LEO is a utility token for iFinex ecosystem. One of the benefit for LEO holder is gain lending fee reduction. This activity is contra with Shariah. | Failed |
| Staking Method | No staking. | Passed |
Read the source document and verify project fundamentals.