FAQ: Why was the participatory loan with qualified subordination agreement chosen as the form of participation?

The subordinated loan is a type of financing provided by Bafin (German Federal Financial Supervisory Authority) for crowdfunding. This form of agreement is best suited for an Islam-compliant implementation. It excludes interest rate transactions and is most similar to an equity transaction due to its subordinated nature. It thus creates the ideal basis for real income and offers all parties a fair share of the risk.

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