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The Process

How It Works

Four steps. Zero interest. Your digital assets stay yours — pledged as security, returned in full the moment you repay.

The Four Steps

From Application to Liquidity

A simple, transparent process — built on centuries-old Islamic finance principles, delivered through modern infrastructure.

I

Create & Verify

Sign up for a Halal Vault account and complete identity verification. KYC and AML checks are completed once — securely and quickly.

≈ 5 – 10 minutes
II

Lock Collateral

Transfer your digital assets to Halal Vault's multi-custody architecture as Rahn — pledged security under Islamic contract. Assets are held, never traded.

Instant confirmation
III

Receive Facility

Your Qard Hasan loan is disbursed to your account. A flat facility fee is charged once. Zero percent interest — ever. No compounding, no rate risk.

Same-day disbursement
IV

Repay & Reclaim

Repay the exact principal you borrowed — nothing more. Your collateral is released immediately. Need more time? Request an extension for a flat fee.

Instant collateral release
Zero Interest — Guaranteed
Rahn-Secured Collateral
Qard Hasan Contract
Multi-CEX Custody
Shariah-Certified Structure
In Depth

Every Step, Explained

01
Create & Verify Your Account

Your identity is verified once. Everything flows from there.

Creating a Halal Vault account takes minutes. You provide your basic information and submit to our KYC (Know Your Customer) and AML (Anti-Money Laundering) verification process — a standard requirement for regulated financial services globally. Verification is conducted once and applies across all loan facilities.

Why verification? Halal Vault operates under financial services regulations in Nigeria and the UK. Identity verification protects both the platform and you — and is a mandatory requirement before any funds move.

Government ID

National ID, passport, or driver's licence. One document. Verified once.

Proof of Address

A recent utility bill, bank statement, or equivalent document.

Digital Asset Source

Basic declaration of digital asset origin, in line with AML requirements.

02
Lock Your Digital Assets as Rahn Collateral

Your assets are pledged — not surrendered. The contract is Rahn.

In Islamic finance, Rahn is the contract of pledge — you retain ownership of your digital assets while they are held as security against your loan facility. Halal Vault's custody architecture ensures your assets are never traded, lent to third parties, rehypothecated, or used for any purpose other than serving as your pledge. They sit. They wait. They are returned when you repay.

Accepted Collateral — Phase 1
Bitcoin (BTC)
Ethereum (ETH)
Tether (USDT)
More assets — post-launch
Loan-to-Value (LTV) Ratio

Halal Vault operates a conservative LTV ceiling of 50%. This means for every $1,000 of digital assets you pledge, you can access up to $500 in liquidity. The margin protects both you and the platform against collateral value fluctuations.

$0 (0% LTV) 50% Maximum LTV 100% of Collateral

Custody partners: Digital assets are held across Binance (primary) and ByBit (secondary) under a multi-custody architecture. No single point of failure. Assets are ring-fenced and segregated from Halal Vault's operational accounts.

03
Receive Your Qard Hasan Facility

Liquidity, disbursed same day. The contract is Qard Hasan.

Qard Hasan — translated as a "benevolent loan" — is the only form of lending explicitly sanctioned in the Qur'an and the Sunnah. The borrower receives a loan and is required only to return the exact principal. No addition. No increment. No interest. Halal Vault structures every loan facility as a Qard Hasan contract, regardless of the borrower's background or religious identity.

Once your collateral is confirmed and your facility is approved, your loan is disbursed to your nominated bank account or digital wallet. A flat facility fee — tiered by loan size and charged once at disbursement — covers platform operations, custody management, and compliance costs. This fee is categorically not interest: it is a fixed administrative charge, not a return on capital lent.

What You Receive

The exact loan amount approved
Disbursed to your bank account or wallet
A clear repayment schedule with maturity date
Full digital contract documentation

What You Will Never Pay

Interest — of any kind, at any rate
Compounding charges or penalties
Hidden fees or rollover interest
Variable rate adjustments over time
04
Repay Principal & Reclaim Your Collateral

Return exactly what you borrowed. Reclaim everything you pledged.

On or before your maturity date, you repay the exact principal amount — no more, no less. Once full repayment is confirmed, your digital assets are released from the Rahn pledge and transferred back to your designated wallet immediately. The contract is fulfilled. The obligation is discharged. Your assets are fully yours again.

If you need additional time before maturity, you may apply for a Facility Renewal. The existing facility is formally closed and a new Qard Hasan contract is issued with a new maturity date — this is not an extension fee, but the origination fee for a new facility. Renewals are applied only on explicit request and are never added automatically.

On-Time Repayment

Repay principal on or before maturity. Instant collateral release. Contract closed.

Facility Renewal

Need more time? Apply for a Facility Renewal before maturity — a new Qard Hasan contract with its own facility fee.

Instant Release

Collateral is returned to your wallet the moment repayment is confirmed. No delays.

Transparent Pricing

The Fee Structure

A flat facility fee tiered by loan size — charged once at disbursement, never recurring. The structural difference between a flat fee and interest is not semantic: it is the foundation of Shariah-compliant lending.

Primary Fee

Administrative Fee Schedule

A fixed administrative fee charged once at origination and classified according to facility type and operational complexity. The fee is disclosed and agreed before contract execution, is never a percentage of principal, never recurring, never compounding, and never linked to financing duration.

Facility Class Description Maximum Administrative Fee
Class A Retail & Microfinance Up to $100
Class B SME Financing Up to $250
Class C Corporate Financing Up to $1,500
Class D Institutional Financing Up to $2,500
Class E Structured / Syndicated Facilities By Separate Agreement

* The exact administrative fee applicable to a facility is determined based on operational, compliance, documentation, custody, and servicing requirements and is disclosed in full before contract execution. Final schedule remains subject to Shariah and regulatory review.

Secondary Fee
Facility Renewal Fee

Loan Extension

Need more time? The existing facility is formally closed and a new Qard Hasan contract is issued with a new maturity date. This is not an extension fee — it is the origination fee for a new facility, applied only on explicit request and never automatically.

0%

Interest — Always

Zero interest charged — at origination, over the life of the loan, or at extension. The number is fixed by Shariah principle, not market rate. It does not change.

Why a flat fee is not interest: Interest is a return on capital that scales with time or principal — prohibited under Shariah as Riba. A flat administrative fee is a charge for a defined service, fixed in advance, bearing no relationship to how long you hold the loan or how large your principal is relative to the fee. This distinction is not cosmetic. It is the structural core of Qard Hasan.

Infrastructure

Custody & Security

Your digital assets never leave a secured, auditable custody environment. Multi-exchange architecture means no single point of failure — ever.

Binance — Primary Custody

The world's largest digital asset exchange by volume. Primary custody partner for all Rahn-pledged collateral.

ByBit — Secondary Custody

Tier-1 global exchange. Secondary custody layer ensures redundancy and platform resilience under all conditions.

Segregated Accounts

Collateral is ring-fenced in segregated accounts. Completely separate from Halal Vault's operational funds.

🔒
Never Traded

Pledged assets are not traded, speculated with, staked, or used in yield strategies. They are held as pure security.

No Rehypothecation

Your collateral is never lent to a third party or used as security for another obligation. Prohibited by Shariah and platform policy.

Full Audit Trail

Every collateral movement is logged and attributable. Complete transparency for Shariah compliance auditing.

Risk Management

Collateral Value & Margin

Digital asset prices fluctuate. Halal Vault's conservative 50% LTV ceiling provides a significant buffer, but if the value of your collateral falls meaningfully below the threshold, the following protocol applies — transparently, and in accordance with Shariah principles.

Price Alert

You receive an advance notification when collateral value approaches the margin threshold. You have time to act — top up collateral, partially repay, or discuss options with our team.

Collateral Top-Up

Deposit additional digital assets to restore your LTV to a safe level. The Rahn pledge is updated accordingly. Your loan continues uninterrupted.

Partial Liquidation — Last Resort

Only if the margin is breached and no remedial action is taken, a portion of collateral may be liquidated to cover the outstanding principal. This is a transparent, Shariah-reviewed process — never punitive, never hidden.

LTV Buffer Illustration
COLLATERAL VALUE
$10,000
MAX FACILITY (50% LTV)
$5,000
BUFFER BEFORE MARGIN CALL
$5,000
Collateral must halve in value before any margin action is triggered.
The Foundation

Two Contracts. One Framework.

Every Halal Vault loan is governed by exactly two Islamic finance contracts. No hybrid structures, no ambiguity, no approximations.

قَرْضٌ حَسَنٌ
Qard Hasan
The Benevolent Loan

The loan structure. The borrower receives principal and returns only principal — nothing more. The word Hasan (good, beautiful) reflects the nature of the transaction: given without expectation of increase. Qard Hasan is the only form of lending explicitly endorsed in the Qur'an.

Return of principal only
Zero interest — unconditional
Sanctioned by Qur'an and Sunnah
رَهْن
Rahn
The Pledge

The collateral structure. A defined asset — your digital holdings — is pledged as security against the Qard Hasan facility. Ownership remains with the borrower throughout. The pledged asset is returned upon full discharge of the loan obligation. Rahn has been practiced in Islamic commercial law for over 1,400 years.

Borrower retains ownership
Asset returned on repayment
Centuries-validated contract form
Full Shariah Framework →
Common Questions

Quick Answers

Do I need to be Muslim to use Halal Vault?

No. Halal Vault is open to everyone. Shariah compliance is the structural framework that ensures the product is transparent, fair, and free of exploitative interest — values that benefit all users regardless of background.

What happens to my digital assets during the loan?

Your assets are held as Rahn collateral in a multi-custody architecture across Binance (primary) and ByBit (secondary). They are never traded, staked, lent, or rehypothecated. They sit as pure security and are returned immediately upon full repayment.

How is the flat facility fee different from interest?

Interest is a return on capital that scales with time and principal — it accrues, compounds, and grows. A flat facility fee is a fixed administrative charge for a defined service: it does not change whether you hold the loan for one week or six months, and it bears no mathematical relationship to the size of your principal relative to cost of capital. This is the Shariah-compliant distinction reviewed and validated by our scholarly advisors.

What if the value of my collateral drops significantly?

Halal Vault's 50% LTV ceiling means your collateral must lose half its value before any margin action is triggered. If values approach the threshold, you receive advance notification and options: top up your collateral, partially repay, or discuss your situation. Partial liquidation is only a last resort, handled transparently and in accordance with the Rahn contract terms.

Which countries are supported at launch?

Phase 1 launches in Nigeria and the United Kingdom simultaneously. These are two distinct regulatory environments chosen to establish dual-market infrastructure from Day 1. Global expansion — including Southeast Asia, the Gulf, and North America — follows based on regulatory approvals and traction data.

Ready to Begin

Your Assets. Your Liquidity.
Zero Interest.

Join the waitlist for Phase 1 access in Nigeria and the UK. Early applicants are first in line when the platform goes live.