musharaka-full
Installation
SKILL.md
THE STRUCTURE
In full Musharaka, ALL parties contribute BOTH capital AND (typically) management. Profits are shared in a pre-agreed ratio (not necessarily proportional to capital). Losses are shared STRICTLY in proportion to capital contributions.
This distinguishes musharaka from mudaraba (where one party provides only labour).
Types of musharaka:
- Permanent Musharaka: indefinite joint venture (equity finance)
- Diminishing Musharaka: see musharaka-dm skill — buy-out structure
- Running Musharaka: short-term revolving working capital facility