The Lotus Musharakah is a financial arrangement established under a contract by the mutual consent of Lotus Capital and the client(s) for sharing of profits and losses, arising from a joint enterprise or venture. The sharing of profits is agreed between the parties, but the sharing of losses must be in accordance with each party's capital contribution.
Features of Musharakah
- Investments come from all partners/shareholders hereinafter referred to as partners.
- Mixing capital, management and obligations in a manner defined in Shari'ah.
- Profits shall be distributed in the proportion mutually agreed in the contract.
- Losses are distributed only according to capital shares.