The 4 classification statuses
The asset satisfies all applicable Sharia criteria. Its primary use is permissible, its mechanisms are free from riba, gharar and maysir, and its reserves (where applicable) are compliant.
The asset violates one or more clearly established Sharia criteria: riba (interest), maysir (gambling), excessive gharar, or financing of prohibited activities (alcohol, tobacco, weapons, pornography).
The asset presents ambiguous characteristics: unresolved scholarly debate, mixed mechanisms (partly permissible, partly questionable), or insufficient data for a definitive classification. Out of caution (ihtiyat), this status recommends abstaining unless a personal scholarly opinion is obtained.
Insufficient fundamental data to apply AAOIFI thresholds. The asset will be analysed in the next screening campaign.
Madhabs and positions
HalalStack's default analysis follows the Hanafi school (majority madhab in Europe and South Asia). Other positions are noted where relevant.
The choice of madhab may influence the classification of certain assets in ambiguous cases.
The 10 evaluation criteria
Riba — Interest-bearing lending mechanism
Protocols integrating a fixed or variable rate lending/borrowing mechanism practise riba, strictly prohibited in Islam according to the Quran (2:275-280) and the Sunnah.
Maysir — Gambling
Tokens designed as pure gambling instruments (lottery tokens, casino coins) are prohibited. Maysir refers to any transaction where one party's gain is another's loss through chance.
Primary use is prohibited
An asset whose primary use case is interest-based lending, casino, gambling or pornography is classified as not halal regardless of its other characteristics.
Payment/network use PoW without lending
An asset with a payment use case, smart contract platform, oracle or decentralised storage, operating on PoW without lending or fixed yield → halal according to scholarly consensus.
PoS consensus — Scholarly debate
PoS staking is subject to an unresolved scholarly debate: participation in network fees (mudaraba, permissible) or interest on locked capital (riba)? → Doubtful status by precaution (ihtiyat).
Guaranteed fixed staking yield
A staking yield guaranteed independently of network performance is analogous to riba. To be distinguished from variable participatory staking.
Gharar — Algorithmic stablecoins
Stablecoins without audited reserves (pure algorithmic mechanism) carry excessive gharar (uncertainty) regarding their stability and future value.
Riba-bearing reserve instruments
If more than 50% of a protocol's reserves are invested in government bonds or conventional bonds → not halal. Between 20% and 50% → doubtful. AAOIFI Standard 21.
Audited physical gold-backed token
A token representing ownership rights over physical gold, audited by an independent third party, is analogous to a sila' certificate → explicitly halal per AAOIFI Std 57.
Excessive centralisation
When a single entity controls more than 50% of tokens or can unilaterally modify protocol rules, the gharar on the asset itself is high → doubtful.
Sources and references
- AAOIFI — Accounting and Auditing Organization for Islamic Financial Institutions (Standards 1-62)
- OIC Islamic Fiqh Academy — Resolutions on modern financial instruments
- Reference scholars: Sheikh Yusuf Al-Qaradawi, Sheikh Taqi Usmani, Sheikh Abdullah Al-Manī', Mufti Faraz Adam
HalalStack Methodology v1.0 — May 2026
Data enrichment cascade
To produce its verdicts, HalalStack collects public factual data via a free cascade: CoinGecko → DefiLlama → GeckoTerminal.
The halal / haram / doubtful verdict is 100% deterministic. It results from the application of rules R1–R11 AAOIFI (v1.0.0) to the collected data. No artificial intelligence intervenes in the verdict itself.
AI is used exclusively to extract structured categories and descriptions from raw data. It does not produce any halal/haram judgment.
This objective and non-personalised nature allows HalalStack to remain within the scope of financial information (AMF Position No. 2018-03 §5) and not investment advice.
To challenge a classification or report a data error: methodology@halalstack.app
Limitations and disclaimers
HalalStack does not issue fatwas. Our analyses are decision-support tools based on recognised sources.
Your personal situation (level of necessity, available alternatives) may modify the application of general rules. Consult a scholar for your specific case.
Jurisprudence on digital assets is rapidly evolving. Our classifications are updated regularly but may not reflect the most recent scholarly developments.
HalalStack disclaims all liability for investment decisions made on the basis of its analyses.