Crypto
Are crypto futures and perpetuals halal?
Read our methodology and editorial policy.
Summary
Crypto futures and perpetual swaps are impermissible by near-consensus among scholars who have ruled on the question. They involve excessive leverage, funding rate interest, and sale of what one does not possess.
The reasoning
Perpetual swap contracts charge or pay a 'funding rate' every eight hours — a time-based payment that scholars classify as riba.
Futures and perpetuals are sold without the seller actually owning the underlying asset, violating the classical prohibition on selling what you do not possess (bay' ma laysa 'indak).
The leverage commonly used (10x–125x) pushes the trade firmly into maysir territory.
Scholar citations
"Impermissible — funding rate is riba, leverage is maysir"
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