I searched on Google but couldn’t find any answer.
Are leveraged tokens Halal or Haram?
For example in Binance, you see coins/tokes that are halal and then you see their leveraged tokens. ADA has ADAUP and ADADOWN.
ADA is halal but are UP & DOWN halal as well?
If they are haram, I earned some profit on UP and reinvested. I later think that they are haram (still need proper guidance from you).
If they are haram and why? And what should I do with the profit i earned from it? I reinvested that $100 and had loss on overall portfolio of 100. Can i count it That haram profit was gone in a loss. Even though that loss came from halal coins. Please feel free to ask any further details you need.
Leveraged Tokens hold perpetual futures on FTX. That means that they will get their exposure to the underlying assets through the perpetual futures. That also means that they will be subject to the price movements, premiums, funding rates, etc. of the perpetual futures.
Binance exchange allow us to buy and sell levereged ETF token
Btcup/usdt or Btcdown/usdt with leverge x2 - x4
Ethup/usdt or Ethdown/usdt
When you buy the a token you own the token in your wallet and you pay daily fees 0.01% for every day holding the token
for example you buy Btcdown/usdt knowing from the chart price might go down
so if the price of bitcoin goes down your token value go up in price,when you sell you pay fees for selling
from what i understand no loans to repay or risking liquidations
if i buy leaveraged token and sell it within a day, than rebalance wont work? in that case it can be halal…
Although, binance etf is intrest free…but if price of btc is going down and you buy btc down you will be in profit…and if price of btc goes up and you buy btcup you will be in profit…is this halal( note within a day, as no case of rebalance)
Imagine buying up or down tokens and not being able to sell because of some emergency or if caught in some work and you are charged interest. Would you still risk it? What’s haram is haram, period…!! The way you are saying would suggest that Futures are also Halal since interest is charged after some time. Stop justifying what your heart says. Mufti told us that it isn’t shariah compliant, this is all we need to know. Sorry for being harsh.
I am not a mufti but if i put my money in some coin and later find out its haram , i usually get out at breakeven. 0.01$ profit is haram even so i get out at a dollar loss. Allah knows best. May Allah forgive me.