Why No Bank?
A traditional bank is a middleman that imposes conditions and interest: loan applications, credit checks, complex collateral, and a fixed profit on the debt itself regardless of the deal's outcome - this is riba, forbidden in Islamic law. A smart contract on Base removes this middleman entirely: it connects a seller who genuinely owns an asset directly to a buyer who needs it, under clear terms declared in code before signing, terms that never change later and are never subject to a bank officer's discretion.
How Does Murabahah Actually Work?
Murabahah is the Sharia-compliant mechanism behind Qist: the seller genuinely owns the asset - ETH or cbBTC - before offering it for sale, a fundamental condition for a valid sale in Islamic jurisprudence (you cannot sell what you don't own). The seller offers the asset at a fixed deferred price agreed upfront, the buyer chooses the number of installments that suits their situation, and upon signing the contract the buyer receives the asset immediately in their wallet - no waiting, no manual approval.
The Practical Steps to Get Financing
The path is direct and needs no bank branch: open a compatible wallet like MetaMask, choose the asset you want to own (ETH or BTC) and the right amount for you, decide on the number of installments that fits your income and repayment ability, then sign the transaction through your wallet - your signature is your complete and final approval, with no paperwork or human intermediary signature required.
What Happens After Approval?
The moment the transaction is confirmed on the blockchain, you receive the asset directly in your wallet - you genuinely own it from the first instant, not a promise of future ownership. Installment scheduling then begins automatically, and repayment is made in the stable USDC currency according to the price and dates agreed upon in the contract from day one, with no changes or surprise fees.
The Protections Built Into the Contract
The contract does not rely on good intentions but on rules written in code that cannot be violated: a 3-day grace period before any liquidation action begins when a payment is late, in mercy to the debtor and in line with the Islamic principle of ease. And if liquidation does occur, any surplus collateral is always returned to its owner without exception - these are rights written into the code that anyone can verify on the blockchain, not verbal promises that can be reneged on.
By the Numbers
Qist's installment fee is just 2%, and the grace period before any liquidation is a full 3 days. The global Islamic finance industry is worth approximately $4 trillion, serving roughly 1.9 billion Muslims worldwide who seek riba-free alternatives. Qist's smart contract is fully and publicly Verified on the BaseScan explorer - anyone can read and audit the code themselves.
Discover Qist: qist.info
Informational content, not financial advice.