A shari’a maxim which bases the entitlement to revenue on corresponding liability for bearing losses (khasara), or the so-called dhaman. In shari’a, it is impermissible that an individual or institution earns profit without assuming a liability for losses that may arise in association with the earning process. In this sense, the capital provider, in mudharaba or mudharaba-like transactions, is entitled to profit because all operational losses (those not caused by negligence or misconduct on the part of mudharib) will be debited from the mudharaba capital.
However, a lender (in qardh, or interest-free and theoretically risk-free loan) cannot take any compensation or reward from a borrower, as the loaned money is not subject to operational risks (the borrower is obliged to return the loan principal in full at the specified payback time).
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