Overview

Live on Berachain: SukukFi is in production at https://app.sukuk.fi. See Product Status for what is available today.

SukukFi is a credit marketplace on Berachain where telecom technology companies borrow working capital to fund supplier invoices, and DeFi depositors earn profit share when buyers settle. All instruments are structured on Islamic finance principles, under Mudarabah or Murabaha. No independent Sharia supervisory board has certified any SukukFi vault; see How SukukFi Aligns for certification status.

One vault is live today: the PrimeTel vault, which finances wholesale voice-minutes purchases. You deposit USDT0, USDC.e, or HONEY and receive duPRT, the bond share token. Bond tokens are composable across DeFi: usable as collateral elsewhere, with a Kodiak market planned but not yet live.

Yield comes from actual business profit share, not token emissions or fixed interest. The target range is 10–20% annualised. Returns vary by pool performance and deployment timing.

This documentation covers how to deposit, how redemption works, the fee structure, the Sharia framework, and the on-chain contracts. Start with Getting Started or go to Live Pools to see what’s available now.

Query SukukFi from an AI assistant

SukukFi runs a public MCP server with live vault data and this documentation:

claude mcp add --transport http sukukfi https://mcp.sukuk.fi/mcp --scope user

See MCP Server for the available tools.

Getting Started

SukukFi is live on Berachain mainnet. One vault is open for deposits today: the PrimeTel vault, accepting USDT0, USDC.e, and HONEY.

To deposit

1. Open the app: https://app.sukuk.fi
2. Check what’s live: Product Status and Live Pools
3. Read the pool page: PrimeTel Vault covers structure, fees, and risk
4. Connect your wallet: Berachain Mainnet (chain ID 80094). If your stablecoins are on another chain, bridge via Stargate Finance first.
5. Deposit: Full steps in How to Deposit

For businesses

Telecom technology companies seeking working capital should read Eligibility Criteria and contact us via Contact & Support.

Product Status

SukukFi is live on Berachain Mainnet. Use the production app at https://app.sukuk.fi.

Live today

• PrimeTel vault: Mudarabah postpaid voice-minutes financing (pool documentation)
• Three deposit assets: USDC.e, USD₮0, and HONEY into the same credit line
• Async ERC-7540 deposits and redeems: request, fulfillment, and claim flows
• Markets and vault pages: deposit, redeem, and cancel from the app
• Portfolio dashboard: wallet positions, vault breakdown, and activity timeline
• On-chain protocol statistics: TVL, value in use, and holder counts on the homepage and markets pages

In development

• Points program and tier benefits
• Historical P&L and performance analytics
• A duPRT secondary liquidity pool on Kodiak, and LP farming integrations beyond it
• Additional live pools beyond PrimeTel

Roadmap

Expansion industries and additional financing verticals are described under Expansion Industries. Those use cases are planned and not yet live on mainnet.

Live Pools

The following pools accept deposits on Berachain mainnet.

PrimeTel

• Structure: Mudarabah (postpaid voice minutes)
• Assets: USDC.e, USD₮0, HONEY
• Share token: duPRT
• Performance fee: Currently waived for this vault

Read full PrimeTel documentation →

Open PrimeTel in the app →

Coming soon

Additional pools will appear here as they launch on mainnet.

PrimeTel Vault

Summary

This vault finances PrimeTel’s purchase of wholesale voice capacity. CommTrade verifies settlement data, and WrapX records transaction settlement on Berachain.

What is voice minutes trading?

Voice minutes trading is the wholesale buying and selling of international call capacity between telecom carriers. Carriers capture profit from pricing gaps between routes, routing efficiency, and volume-driven unit cost reductions.

Who is PrimeTel?

PrimeTel is a Cypriot quad-play telecom operator (mobile, fixed internet, fixed-line, and TV) with its own mobile and fiber infrastructure in Cyprus. It holds an estimated 11% share of the Cyprus telecom market and trades in global wholesale carrier capacity. Signal Capital Partners backs the company.

PrimeTel wholesale services ↗

Invoice and repayment cycle

• Invoice 1: issued on the 16th for usage from the 1st to 15th
• Invoice 2: issued on the 1st for usage from the 16th through month end
• Payment term: 15 days from each invoice date

Redemptions queue against this repayment cycle when capital is deployed.

Supported assets

The vault accepts deposits in USDC.e, USD₮0, and HONEY. All three paths receive the same duPRT share token.

Fees

SukukFi’s standard performance fee of up to 20% is currently waived for this vault. Depositors receive the full profit share from their position, subject to pool performance.

Risk assessment

Credit default risk (total loss): Low. PrimeTel is an established operator with infrastructure assets, recurring commercial activity, and a meaningful market position.

Fraud risk (total loss): Very low. CommTrade validates usage and settlements against real traffic activity.

Negative yield risk: Low. Negative yield is expected only in a stress-recovery scenario that triggers offsetting recovery mechanisms.

Payment processor risk (operational): Low. A regulated payment processor receives PrimeTel’s fiat invoice payments, converts them to stablecoin and credits the carrier’s own wallet; the protocol then reclaims the owed amount on-chain, outside the processor’s rail. Repayment is first-party and the processor never pays the vault. LP capital is on-chain throughout and is not held by the processor. Carrier fiat is safeguarded on a for-benefit-of (FBO) basis in segregated accounts with the processor’s regulated banking partner, the standard, insolvency-remote structure for USD custody, and carrier stablecoin is held segregated and not rehypothecated. Residual risk is timing: there is no contractual settlement window and no freeze notice or maximum hold period, the processor may hold or freeze a balance at its discretion for AML or regulatory reasons, and its liability is capped at prior-quarter fees, not principal. SukukFi reconciles settlement against CommTrade data and maintains a processor substitution contingency plan within the 60-day termination notice window. See Risk Considerations for full detail.

Liquidity and exit

• Primary: Redeem duPRT through the async vault flow when liquidity is available
• Secondary: A duPRT market on Kodiak AMM is planned but not yet live; no pool exists today, so there is currently no secondary exit

See How to Redeem & Withdraw and Secondary Market Liquidity.

Sharia structure

PrimeTel uses a Mudarabah postpaid structure. See Mudarabah Principles for Traffic Funding and Use Case 1.

Deposit in the app

Open PrimeTel vault → · How to Deposit

How to Deposit

Deposits on Berachain use the ERC-7540 async vault standard. Your stablecoins enter a pending state after you request a deposit. This is expected behaviour.

Prerequisites

• A Web3 wallet connected to Berachain Mainnet
• Supported stablecoin: USDC.e, USD₮0, or HONEY
• A small amount of BERA for gas
• If your stablecoins are on another chain, bridge to Berachain first (for example via Stargate Finance)

Step-by-step

1. Open https://app.sukuk.fi and go to Markets → PrimeTel → Vault details.
2. Select the asset you want to deposit (USDC.e, USD₮0, or HONEY).
3. Enter the amount and Approve the token if prompted.
4. Click Request Deposit. Your stablecoins move into a pending deposit state in the vault.
5. Wait for the Investment Manager to fulfill the deposit batch. You cannot accelerate this from the app.
6. When claimable, click Claim duPRT Shares to receive your pool share token.

Cancel a pending deposit

If your deposit is still pending, click Cancel Pending Deposit. After the cancellation processes, click Claim Cancelled Deposit to recover your stablecoins.

What you receive

duPRT (18 decimals) is the share token for all three asset vaults into PrimeTel. Your duPRT balance gives you a proportional claim on the pool.

Troubleshooting

• Balance shows pending: Fulfillment has not completed yet. See Glossary.
• Wrong network: Switch your wallet to Berachain Mainnet (chain ID 80094).
• Transaction reverted: Check allowance, balance, and gas.

How to Redeem & Withdraw

Exiting a pool follows the same async ERC-7540 pattern as deposits: Request → Fulfill → Claim.

Primary exit: redeem duPRT

1. Open the vault page in https://app.sukuk.fi.
2. Switch to the Redeem panel.
3. Enter the duPRT amount and submit a redeem request.
4. Wait for fulfillment when vault liquidity is available.
5. Claim your stablecoins once the redeem becomes claimable.

Timing expectations

If capital is idle in the vault, the Investment Manager may fulfill your redemption sooner. If capital is deployed into the credit line, your redemption queues until liquidity returns. For PrimeTel, that timing ties to invoice repayment cycles (see PrimeTel Vault).

Secondary exit: Kodiak (planned, not yet live)

A duPRT market on the Kodiak AMM is planned but not yet live; no pool exists today, so there is currently no secondary exit. Once seeded, sales would be subject to market depth and slippage. See Secondary Market Liquidity.

For a conceptual overview, see Withdrawal Process.

Glossary

duPRT

The SukukFi share token (also called a bond token in product docs). ERC-7540-compatible, 18 decimals. Gives holders proportional ownership of an investment pool.

Vault

An ERC-7575 smart contract covering one stablecoin asset path into a pool. PrimeTel has three vaults (USDC.e, USD₮0, HONEY) sharing one duPRT token.

Pool / credit line

The financing arrangement backed by a business use case. PrimeTel is the one live pool today.

Pending deposit

Stablecoins submitted via Request Deposit, waiting for Investment Manager fulfillment before the depositor can claim duPRT.

Custodied / TVL (homepage)

Total stablecoin value held across vaults, including pending, deployed, and refund-queue balances. See Protocol Statistics.

Value in use

Capital deployed into the credit line, not sitting idle in the vault.

Investment Manager

The operator role that fulfills async deposit and redeem batches. See Centralization Rationale.

CommTrade

Off-chain telecom trading and settlement platform connected to SukukFi’s settlement layer.

Understanding SukukFi

SukukFi operates on Islamic finance principles: profit sharing, not interest-based lending. Conventional debt locks borrower and lender into a fixed-interest creditor-debtor arrangement. SukukFi structures a partnership instead, where investors share in the actual profits that business operations generate.

Key Principles:

• Mudarabah: Profit-sharing contracts where capital providers and entrepreneurs split returns at pre-agreed ratios
• Murabaha: Asset-backed sale contracts with transparent, predetermined profit margins
• Asset-Backed Security: All financing is secured against real business assets, inventory, or cash flows

How SukukFi Works

SukukFi connects telecom technology companies that need working capital with DeFi depositors who want real-yield exposure. The mechanism runs on Berachain smart contracts.

1. Pool creation: A financing pool opens for a specific borrower with defined terms and a profit-sharing ratio. The PrimeTel vault, currently live, finances wholesale voice-minutes purchases under a Mudarabah structure.
2. Capital deposit: You deposit USDT0, USDC.e, or HONEY into the vault. The ERC-7540 async flow places your deposit in a pending state until the Investment Manager fulfills the batch. You then claim duPRT, the bond share token.
3. Capital deployment: Deployed capital funds the borrower’s supplier invoices. The on-chain settlement layer records and verifies each transaction.
4. Buyer settlement: When buyers pay their invoices, capital returns to the vault with the agreed profit share.
5. Profit distribution: Profit accrues to duPRT holders proportional to their pool ownership, based on actual settlement outcomes. There is no fixed interest; returns depend on business performance.
6. Exit: Redeem duPRT through the async vault flow. A Kodiak AMM secondary market is planned but not yet live.

Why SukukFi is Different

Yield from real commerce, not token emissions

Returns come from actual business profit share when telecom buyers settle invoices. There are no inflationary token rewards, no fixed interest payments. If the business does not perform, distributions fall, which is precisely the alignment Sharia requires.

Smart contracts embedded in the settlement chain

SukukFi’s on-chain infrastructure integrates with the commercial systems telecom technology companies use to trade and settle. Each transaction is validated and recorded on Berachain before capital moves. The vault controls fund flows end-to-end.

Composable bond tokens

duPRT is an ERC-20 token, so it can be posted as collateral in compatible DeFi protocols. A Kodiak AMM market is planned but not yet live; no duPRT pool exists today, so there is currently no secondary exit.

Low correlation to crypto markets

Returns derive from telecom invoice settlement cycles, not crypto price action. DAOs, crypto funds, and qualified investors use this to diversify treasury yield without adding directional exposure.

Products

SukukFi’s on-chain product suite spans three layers: pooled capital vehicles, bond tokens representing pool shares, and a permissioned settlement token for telecom B2B transactions.

SukukFi Bond Pools Pooled capital vehicles that finance real-world telecom trade invoices and distribute Mudarabah profit shares to depositors. SukukFi Bond Tokens ERC-7540 tokens (e.g. duPRT) representing fractional ownership of a bond pool, usable as DeFi collateral and tradable on secondary markets. trUST Settlement Dollar A permissioned synthetic dollar backed 1:1 by stablecoins, issued exclusively to CommTrade carriers for on-chain settlement of B2B telecom invoices.

SukukFi Bond Pools

Live pools on Berachain use ERC-7540 async vaults with a shared duPRT share token across multiple stablecoin entry points. See Live Pools for current mainnet availability.

Each pool finances a specific borrower under defined Sharia-compliant terms. The pool smart contract controls all fund flows: deposits, deployment to the credit line, profit collection, and redemptions. Nothing moves without on-chain execution.

Pool structure

• One credit line per pool: capital deploys to a single borrower arrangement with a defined profit-sharing ratio and repayment schedule
• Multiple deposit assets: the PrimeTel vault accepts USDT0, USDC.e, and HONEY, all sharing one duPRT token
• Async ERC-7540 deposits and redemptions: requests queue and fulfill in batches; there are no instant in-and-out flows
• Profit share from actual settlement: returns accrue only when borrowers pay; no synthetic or guaranteed yield
• On-chain transparency: vault balances, pending amounts, and deployed capital are readable from Berachain at any time

SukukFi Bond Tokens

On Berachain mainnet, pool shares are issued as duPRT, an ERC-20 token with 18 decimals. Product documentation may refer to these as SukukFi Bond Tokens. See the Glossary and Smart Contracts for addresses.

When you deposit stablecoins into a SukukFi pool, you receive duPRT representing your proportional ownership of that pool and your entitlement to profit distributions.

What duPRT does

• Profit participation: distributions accrue from actual business settlement, not interest or token emissions
• DeFi composability: post as collateral on compatible lending protocols, or provide liquidity on Kodiak once a pool exists
• Secondary liquidity (planned): a Kodiak AMM market would allow sales without waiting for a vault redemption. No duPRT pool exists today
• Full transferability: standard ERC-20, compatible with any wallet or protocol that accepts ERC-20 tokens

Token mechanics

• Each duPRT represents a fractional claim on the pool’s deployed capital and accrued profit share
• Profit accrues as the pool collects settlements; it does not compound automatically unless you reinvest
• Token value is not pegged; it reflects pool performance and deployment status

trUST Settlement Token

trUST is a permissioned on-chain settlement token built for CommTrade. One trUST represents one US dollar, backed 1:1 by stablecoins in audited Berachain vaults. Telecom operators on CommTrade use it to settle B2B transactions with each other.

A correspondent banking wire between carriers takes 2-5 days and costs 1-3% in fees. trUST settles the same obligation on-chain in the same block, with no bank. It accrues no interest and carries no yield.

What Problem trUST Solves

Telecom wholesale settlement is a $300B annual flow between carriers. When a voice call routes from Network A to Network B, Network A owes a settlement payment. Carriers clear these monthly: bilateral netting, then a wire through a correspondent bank.

• Float risk: carriers extend 30-90 days of unsecured credit to counterparties
• Reconciliation overhead: CDR matching, dispute resolution, and FX conversion across dozens of bilateral relationships
• Counterparty exposure: a large carrier default cascades across the settlement chain
• Banking friction: correspondent fees, SWIFT delays, and cut-off times on international wires

CommTrade records the verified obligation on-chain. Carriers settle in trUST: instant, auditable, no bank.

How trUST Works

1. Onboarding: A telecom operator completes CommTrade KYB/KYC. The SukukFi operator grants minting access.
2. Minting: The operator deposits USDC.e, USD₮0, or HONEY into the trUST vault. The deposit queues as an async ERC-7575 request. The SukukFi operator reviews and approves, then SukukFi issues trUST 1:1 to the operator’s wallet.
3. Settlement: The operator transfers trUST to the counterparty’s CommTrade wallet to settle verified traffic invoices. Berachain records every transfer: immutable, timestamped, and auditable by both parties with no bank.
4. Redemption: To exit, a holder requests redemption for the underlying stablecoin. The SukukFi operator reviews and approves it, then the holder burns trUST and receives stablecoin 1:1. Minting and redemption both go through operator review. There is no permissionless path in or out.

Key Properties

• 1:1 peg: The vault holds exactly one dollar of stablecoin for every trUST. No fractional reserve, no algorithmic component.
• Permissioned issuance: Only KYB-verified CommTrade participants can mint trUST. See Why trUST is Permissioned below.
• Operator-reviewed redemption: The SukukFi operator approves each redemption before it settles, the same review that governs minting. Neither direction is permissionless.
• No yield: trUST accrues no interest or profit share. Its value is always $1.00. Yield accrues to SukukFi LP token holders (duPRT), not trUST holders.
• On-chain auditability: Every mint, transfer, and redemption lands as an ERC-20 Transfer event on Berachain. Any party verifies the settlement history without asking a bank for records.

Why trUST is Permissioned

Both minting and redemption require operator approval. Open minting or open redemption would expose trUST to arbitrage attacks, depeg cascades, and wash-trading. Gating both directions removes the atomic window an attacker needs on either side.

Consider a 0.2% DEX premium on open-mint trUST: a $10M flash loan extracts $20,000 per block by minting at par and selling at the premium. Redemption carries the mirror risk. An open redeem path lets the same capital buy trUST below par and redeem at $1.00, draining backing from the other side. That pressure erodes the vault or forces the operator into constant rebalancing. Operator review on each side shuts the window.

Permissioned minting also enforces the commercial boundary. trUST goes to verified CommTrade participants with real settlement obligations. Token velocity stays tied to actual telecom traffic, not speculative demand.

For the specific arbitrage scenarios the permissioned model prevents, read How trUST Avoids Arbitrage Risk.

Contract Details

Who Can Use trUST

Telecom operators and carriers complete CommTrade onboarding to gain minting access:

• Wholesale voice and data carriers with active CommTrade credit lines
• Technology intermediaries routing traffic on behalf of Tier 1 operators
• SukukFi-approved liquidity providers settling vault obligations

To start CommTrade onboarding and gain trUST minting access, contact the SukukFi team at Contact & Support.

Capital providers who refer new depositors to SukukFi vaults can earn monthly trUST payouts through the LP Introducer Commission programme. See Invite Code for details.

Supported Industries

Current Focus Expansion Industries

Current Focus

Wholesale telecom technology companies

SukukFi’s live financing targets the global telecom voice, messaging, and data wholesale market, a sector moving roughly $1 trillion per year. Specifically, SukukFi finances technology companies that:

• Trade voice minutes, SMS, and data through IoT and roaming contracts
• Sell to credit-worthy institutional buyers: Tier 1 operators, hyperscalers, and government departments
• Need working capital to bridge the gap between paying suppliers and receiving settlement from buyers

The PrimeTel vault is the live example: it finances PrimeTel’s wholesale voice-minutes purchases under a Mudarabah structure. See PrimeTel Vault for the full deal documentation.

Expansion Industries

Roadmap: not yet live on mainnet. SukukFi’s current live focus is telecom wholesale finance (PrimeTel on Berachain). The industries below are planned expansion verticals.

SukukFi plans to onboard businesses across these sectors:

Financial Services:

• Payments companies running remittances
• Fintechs active in consumer micro credit, automotive, and real estate transactions

Energy Sector:

• Companies purchasing electricity and gas contracts wholesale

Digital Economy:

• Game makers working with publisher networks and marketplaces
• Digital media brands in programmatic advertising

International Trade:

• Exporters of industrial and precious metals, and agricultural and mineral commodities
• Electronics, machinery, and automotive exporters

For Capital Providers

Who Can Invest Investment Process Supported Assets Expected Returns Risk Considerations

Who Can Invest

Depositing into SukukFi vaults requires a Web3 wallet on Berachain Mainnet and a supported stablecoin (USDT0, USDC.e, or HONEY). KYC is not currently required to deposit.

SukukFi vaults attract a range of capital providers:

• Individual DeFi depositors: seeking real-yield exposure uncorrelated to crypto price action
• DAOs and crypto-native funds: diversifying treasury yield into trade finance
• Accredited investors and family offices: accessing Sharia-compliant structured credit on-chain
• Institutional capital providers: allocating to emerging market telecom receivables via a regulated-grade on-chain structure

You are responsible for ensuring your participation complies with applicable laws in your jurisdiction. See Access & Compliance.

Investment Process

1. Select a live pool: See Live Pools (PrimeTel today).
2. Connect wallet: Berachain Mainnet on https://app.sukuk.fi.
3. Approve stablecoin: Grant vault spending allowance if prompted.
4. Request deposit: Async ERC-7540 flow; funds enter pending state.
5. Wait for fulfillment: Investment Manager fulfills the batch.
6. Claim duPRT: Receive share tokens when claimable.
7. Monitor: Dashboard and vault page show position status.
8. Exit: Redeem via the vault. A Kodiak secondary market is planned but not yet live. See How to Redeem & Withdraw.

Detailed steps: How to Deposit.

Supported Assets

SukukFi pools run on Berachain Mainnet (chain ID 80094). Deposit a supported stablecoin and the vault credits duPRT share tokens to your wallet.

Supported stablecoins:

• USDC.e
• USD₮0
• HONEY

If your stablecoins are on another blockchain, bridge to Berachain before depositing (for example via Stargate Finance).

Contract addresses: Smart Contracts.

Expected Returns

Target range: SukukFi pools target approximately 10–20% APY from profit-sharing arrangements. This is a target range, not a guarantee. Actual returns depend on pool performance, deployment timing, fees, and business outcomes.

Check each live pool’s documentation for current fee treatment. For example, the PrimeTel Vault currently waives the performance fee.

Yield enhancement options:

• Provide liquidity on DeFi AMMs using SukukFi bond tokens (duPRT)
• Reinvest profit distributions to compound returns
• Use bond tokens as collateral for additional DeFi strategies

Risk Considerations

Pool-specific risk disclosures are in each pool’s documentation. For the live vault, see PrimeTel Vault. Contract details: Smart Contracts · Audits: Security Audits.

Business performance risk

Profit distributions depend on whether the borrower’s buyers settle their invoices on time and in full. A shortfall in settlement reduces or eliminates the profit share for that period. Capital is not guaranteed.

Liquidity risk

Vault redemptions are asynchronous. When capital is deployed into the credit line, your redemption queues until liquidity returns from borrower repayments or new deposits. For PrimeTel, this ties to invoice cycles running on 15-day payment terms. A Kodiak AMM secondary exit is planned but not yet live; no duPRT pool exists today, so vault redemption is currently the only exit.

Counterparty risk

If the borrower defaults, depositors bear the loss proportional to their pool share. SukukFi’s credit assessment process and on-chain settlement verification reduce but cannot eliminate this risk. See Business Risk Assessment.

Before any legal action, SukukFi has a non-judicial recovery route it uses first: netting balances against another obligor within the telecom interconnection network, rather than collecting from the defaulting obligor directly. This is estimated to recover 66.66% to 75% of the amount owed, over roughly the same 30 days as a normal settlement cycle for PrimeTel. This is SukukFi’s own recovery methodology, not an independently audited or externally published figure.

Legal action is a fallback, pursued only if the netting route is unavailable or unsuccessful. Taking a claim to court can push the obligor into formal insolvency proceedings, and at that point recovery is no longer within SukukFi’s control: a liquidator or insolvency practitioner decides what gets repaid and in what order, following legal priority rules. SukukFi’s claim through assigned receivables is not a secured position, so recovery through the courts is uncertain and could be zero.

Smart contract risk

The vault contracts on Berachain have been audited. Audit reports are at Security Audits. No audit eliminates all smart contract risk.

Payment processor risk

SukukFi uses a regulated payment processor (Fuze Finance, the trading name of the Switch Pay group) as the fiat banking layer for the carrier. The obligor pays into the carrier’s dedicated IBAN, and the processor converts the receipt to stablecoin and credits the carrier’s own wallet. Repayment is first-party: the protocol reclaims the owed amount from the carrier’s wallet on-chain, outside the processor’s rail. The processor never pays the vault or any SukukFi account. LP capital is held in on-chain vault contracts and is not custodied by the processor. LP exposure is therefore operational, whether the carrier’s payment can be collected, converted and moved on schedule, not whether LP capital is at risk with the processor.

Under the executed Technology Services Agreement between SukukFi and Switch Pay Limited, and the current draft carrier-facing End-User Services Terms: carrier fiat is safeguarded on a for-benefit-of (FBO) basis in segregated accounts with the processor’s regulated banking partner, held in the processor’s name for the carrier’s benefit. This is the standard, insolvency-remote structure used for USD custody by regulated payment firms and neobanks, and is the strongest part of the arrangement. Carrier stablecoin is held segregated and is not lent, pledged, or rehypothecated. In an insolvency these balances are intended to be identifiable and returned in priority to general creditors, subject to the applicable insolvency regime.

What the agreement does not provide: there is no fixed settlement-time SLA, and no contractual freeze notice or maximum hold period. The processor may hold, delay or freeze a balance at its discretion for AML, sanctions or regulatory reasons, with no maximum duration and, where tipping-off rules apply, without notice. Its contractual liability is capped at fees received in the prior quarter, not transaction principal.

SukukFi reconciles expected settlement against CommTrade invoice and carrier data, escalates sustained delays under the financing agreement with the carrier, and maintains a processor substitution contingency plan within the 60-day termination notice window.

For Businesses

Eligibility Criteria Benefits for Businesses

Eligibility Criteria

SukukFi currently finances telecom technology companies that sit in the wholesale voice, SMS, data, IoT, and roaming supply chain. Specifically, borrowers need to:

• Trade traffic streams (voice minutes, SMS, or data) with institutional counterparties
• Operate IoT or roaming contracts that generate measurable, recurring settlement obligations
• Sell to credit-worthy buyers: Tier 1 operators, hyperscalers, government departments, or equivalent
• Have a verifiable transaction flow that can be monitored and settled on-chain via the CommTrade platform

There is no minimum revenue threshold. Assessment focuses on the quality and verifiability of the transaction flow, not historical financials alone. SukukFi works with businesses to structure financing around their specific commercial arrangements.

To discuss eligibility, contact us via Contact & Support.

Benefits for Businesses

Working capital without fixed interest

SukukFi funds supplier invoices under Sharia-compliant profit-sharing structures. You pay a share of the profit when buyers settle, not a fixed interest rate on outstanding debt. In months with thinner margins, your financing cost moves with performance.

Access to DeFi capital pools

Rather than depending on a single bank credit line, you draw from a pool of DeFi depositors on Berachain. Capital can scale with your transaction volume without renegotiating bilateral terms each time.

On-chain settlement integration

The CommTrade platform validates your traffic and invoice data, and settlement records land on Berachain. This creates an auditable, timestamped record of every funded transaction, useful for counterparty verification and internal reconciliation.

Flexible structuring

Financing arrangements are structured around your specific commercial cycle. Postpaid voice-minutes financing, prepayment facilities, and other telecom trade flows each have their own Sharia-compliant structure. See Common Shariah Compliant Structures.

Sharia Principles

Core Prohibitions Positive Requirements Common Shariah Compliant Structures How SukukFi Aligns

Core Prohibitions

• Riba (interest): Returns must come from real economic activity. Money lending money is forbidden.
• Gharar (excessive uncertainty): Contracts must specify price, subject matter, and delivery terms without ambiguity.
• Maysir (speculation/gambling): Shariah forbids excessive risk-taking and zero-sum speculation.
• Haram activities: SukukFi does not finance prohibited sectors, including alcohol, gambling, pornography, and pork.
• Unjust enrichment: Transactions must not exploit or create imbalance between parties.

Positive Requirements

• Asset-backed or asset based financing: Each transaction links to tangible assets or services.
• Risk sharing: Parties share profit and loss according to agreed ratios.
• Clear, transparent contracts: Contracts define ownership and terms upfront, reducing disputes.
• Ethical impact: Investments must deliver social value beyond financial return.

Common Shariah Compliant Structures

Common structures include Mudarabah (profit sharing), Musharakah (joint venture), Murabaha (cost plus sale), Ijara (lease), and Sukuk (asset based certificates). Where risk protection is needed, parties use Takaful (mutual insurance) rather than conventional insurance.

Mudarabah (profit sharing partnership)

One party provides capital (rab al-mal); the other provides expertise and management (mudarib). Parties split profits at a pre-agreed ratio. The capital provider bears financial losses unless the mudarib’s mismanagement or negligence caused them. This structure ties returns to real performance, not guaranteed interest.

Musharakah (joint venture)

All partners contribute capital and may take part in management. Parties distribute profits at agreed ratios and share losses in proportion to each party’s capital contribution. Project financings where shared ownership and shared risk fit the deal use Musharakah.

Murabaha (cost plus sale)

A financier buys a specified asset and sells it to the customer at disclosed cost plus an agreed profit margin, often with deferred payments. Shariah validity rests on clear asset ownership, transparent pricing, and a fixed profit margin with no link to interest on money.

Ijara (lease)

The financier buys an asset and leases it to the customer for a defined period at a fixed rental. The lessor retains ownership; the lessee gets use. Contracts specify maintenance responsibilities and any ownership transfer upfront, removing uncertainty.

Sukuk (asset based certificates)

Sukuk give holders proportionate ownership in underlying assets, usufruct, or services. Returns come from those assets, such as lease income or profit shares, rather than interest payments. Each sukuk structure ties investor returns to real economic activity through a direct asset link.

Takaful (mutual insurance)

Participants contribute to a pooled fund that covers mutual protection against defined losses. A cooperative manager runs the fund, and any surplus after claims and costs goes back to participants. This avoids conventional insurance, which relies on excessive uncertainty or interest-based investment.

How SukukFi Aligns

• Profit-based returns: Investors earn from business performance, not fixed interest.
• Asset-linked financing: SukukFi deploys capital into real trade flows with measurable cash flows.
• Risk sharing: Returns reflect actual outcomes, so investor and borrower incentives align.
• Permissible activity screening: SukukFi finances only lawful business activity.
• Transparent terms: Smart contracts encode profit splits, obligations, and timelines before deployment.

Certification status: No independent Sharia supervisory board has certified any SukukFi vault. SukukFi applies Islamic finance structures (Mudarabah and Murabaha) as a design principle, not as a certified or regulated product. Investors seeking certified compliance should obtain an independent Sharia opinion before committing capital.

Technical Infrastructure

System Purpose

The WERC7575 smart contract system is the blockchain settlement layer within a multi-tier telecom wholesale voice traffic settlement ecosystem. It connects to off-chain platforms (COMMTRADE and WRAPX) and telecom OSS/BSS systems to settle inter-carrier voice traffic transactions with a full on-chain audit trail.

Multi Tier System Architecture Layer by Layer Breakdown System Interaction Why Two Separate Systems? Centralization Rationale Security Considerations Integration Notes for Auditors Conclusion

Multi Tier System Architecture

Complete Ecosystem Overview

Layer by Layer Breakdown

TIER 1: Telecom OSS/BSS Systems

Components: Carrier operational systems (legacy telecom infrastructure)

Responsibilities:

• Call Routing: Direct voice traffic between carriers
• CDR Generation: Create Call Detail Records for every call
  • Origin/destination numbers
  • Call duration
  • Timestamps
  • Quality metrics
• Rate Management: Apply agreed rates per destination/carrier
• Real-Time Operations: 24/7 voice traffic handling

Output: CDRs (Call Detail Records) pushed to COMMTRADE

Example:

Carrier A routes call: +1-555-0100 → +44-20-7946-0958
Duration: 15 minutes
Rate: $0.02/minute
Cost: $0.30
CDR sent to COMMTRADE for accounting

TIER 2: COMMTRADE Platform (Off-Chain Smart Contract Engine)

Nature: Off-chain platform with smart contract capabilities

Responsibilities:

1. OSS/BSS Integration

• Connects to multiple carrier OSS/BSS systems
• Ingests CDRs in real-time
• Normalizes data formats across carriers

2. Rate Exchange Management

• Enforces bilateral rate agreements
• Applies volume discounts
• Handles rate updates
• Manages currency conversions

3. Call Routing Logic

• Least cost routing (LCR)
• Quality-based routing
• Load balancing
• Failover management

4. Transaction Accounting

• Records every voice traffic transaction
• Applies agreed rates
• Calculates per-carrier balances
• Maintains detailed transaction history

5. Settlement Preparation

• Settlements are accounted for in quasi-real-time and pushed when they reached a defined amount or timer
• Generates settlement instructions

6. Data Push to WRAPX

• Pushes individual settlement instructions (not batched)
• WRAPX receives individual transactions for batching and blockchain execution
• Provides transaction details for WRAPX validation and optimization

Example Settlement Period:

Week 1 Transactions (aggregated by COMMTRADE):
─────────────────────────────────────────────────
Carrier A → Carrier B: 1,000,000 minutes @ $0.02 = $20,000
Carrier B → Carrier C: 800,000 minutes @ $0.025 = $20,000
Carrier C → Carrier A: 500,000 minutes @ $0.03 = $15,000
Carrier A → Carrier C: 300,000 minutes @ $0.028 = $8,400
Carrier B → Carrier A: 600,000 minutes @ $0.022 = $13,200

COMMTRADE calculates net positions:
────────────────────────────────────
Carrier A: -$20,000 - $8,400 + $15,000 + $13,200 = -$200 (net payer)
Carrier B: +$20,000 - $20,000 - $13,200 = -$13,200 (net payer)
Carrier C: +$20,000 - $15,000 + $8,400 = +$13,400 (net receiver)

Individual settlement instructions sent to WRAPX:
──────────────────────────────────────────────────
Transaction 1: Transfer $200 from Carrier A to Carrier C
Transaction 2: Transfer $13,200 from Carrier B to Carrier C

(WRAPX will batch these into a single blockchain transaction)

TIER 3: WRAPX Platform (Off-Chain Settlement Entity)

Nature: Off-chain settlement management platform

Responsibilities:

1. Settlement Validation

• Receives settlement instructions from COMMTRADE
• Validates settlement calculations
• Checks for discrepancies
• Confirms carrier balances sufficient

2. Batch Optimization

• Receives individual settlement instructions from COMMTRADE
• Aggregates multiple instructions into optimized batches
• Optimizes for gas efficiency
• Groups similar operations
• Schedules blockchain transactions

3. Blockchain Interaction

• Acts as validator on WERC7575 contracts
• Signs batch settlement transactions
• Pushes batchTransfers() to blockchain
• Monitors transaction confirmations
• Handles failed transactions

4. Permit Management

• Controls withdrawal permissions
• Issues permit signatures for valid withdrawals
• Enforces withdrawal rules:
• No outstanding settlement disputes
• Regulatory compliance checks
• Sufficient liquidity maintained
• AML/KYC validation

5. Dispute Resolution

• Manages settlement disputes between carriers
• Holds withdrawals during investigations
• Coordinates with COMMTRADE for data verification
• Releases funds when disputes resolved

6. Settlement Monitoring

• Tracks all blockchain settlements
• Generates settlement reports
• Alerts on anomalies
• Maintains audit trail

Example WRAPX Operation:

WRAPX receives individual instructions from COMMTRADE:
────────────────────────────────────────────────────────
Instruction 1: Transfer $500 from Carrier A to Carrier B
Instruction 2: Transfer $300 from Carrier B to Carrier C
Instruction 3: Transfer $400 from Carrier C to Carrier A
Instruction 4: Transfer $200 from Carrier D to Carrier E
... (50 total individual settlement instructions for 20 carriers)

WRAPX batches and optimizes:
────────────────────────────
• Aggregates all 50 individual instructions
• Applies netting algorithm
• Result: 12 net transfers (76% reduction)

WRAPX pushes single batch to blockchain:
──────────────────────────────────────────
batchTransfers(
    debtors:   [Carrier A, Carrier B, ...],
    creditors: [Carrier C, Carrier D, ...],
    amounts:   [200, 13200, ...]
)

Signed by: WRAPX validator private key
Gas cost: ~200k gas (vs. 1M+ gas if each instruction was separate blockchain tx)

TIER 4A: On-Chain Settlement Layer (WERC7575)

Purpose: Telecom Carrier Settlement Platform

Primary Users: Telecom carriers (wholesale voice traffic operators)

Core Function: Real-time settlement of inter-carrier voice traffic transactions

Use Case Flow

┌─────────────────────────────────────────────────────────────────────┐
│                    TELECOM SETTLEMENT FLOW                          │
└─────────────────────────────────────────────────────────────────────┘

Step 1: Carrier Onboarding
──────────────────────────
Carrier A (e.g., Verizon Wholesale) → KYC verification
Carrier B (e.g., AT&T Wholesale)   → KYC verification
Carrier C (e.g., T-Mobile Wholesale) → KYC verification

Each carrier gets:
• Wallet address on WERC7575ShareToken
• KYC verification from validator
• Telecom integration deployed (for settlement enforcement)

Step 2: Funding (Permissionless Deposit)
─────────────────────────────────────────
Carrier A deposits: 1,000,000 USDC
Carrier B deposits: 500,000 USDC
Carrier C deposits: 750,000 USDC

Deposits are PERMISSIONLESS (anyone KYC-verified can fund their wallet)
Reason: Carriers need to top up quickly to maintain service

Step 3: Voice Traffic & Settlement
───────────────────────────────────
Throughout the month:
• Carrier A routes 10M minutes through Carrier B's network → owes $500k
• Carrier B routes 8M minutes through Carrier C's network → owes $400k
• Carrier C routes 5M minutes through Carrier A's network → owes $250k

Settlement platform tracks all traffic via telecom integrations

Step 4: Batch Settlement Execution
───────────────────────────────────
Validator (settlement platform) calls:

batchTransfers(
    debtors:   [Carrier A, Carrier B, Carrier C],
    creditors: [Carrier B, Carrier C, Carrier A],
    amounts:   [500000, 400000, 250000]
)

Netting algorithm optimizes:
• Carrier A: -500k + 250k = -250k (net payer)
• Carrier B: +500k - 400k = +100k (net receiver)
• Carrier C: +400k - 250k = +150k (net receiver)

Only 3 state changes instead of complex multi-transfer cascade!

Step 5: Withdrawal (Permission Required)
─────────────────────────────────────────
Carrier B wants to withdraw 100k from their balance:

• Carrier B requests withdrawal from settlement platform (off-chain)
• Settlement platform validates request (e.g., no outstanding payments)
• Settlement platform issues permit signature:
  permit(Carrier B, Carrier B, 100k, deadline, v, r, s)
• Carrier B calls transfer() with permit → withdrawal succeeds

WHY PERMISSION REQUIRED?
• Prevents withdrawal during settlement disputes
• Ensures regulatory compliance (AML checks)
• Allows settlement platform to freeze fraudulent carriers
• Ensures carriers have sufficient liquidity for ongoing settlement obligations

Key Design Rationale: Settlement Layer

1. Permissionless Deposits (with KYC)

// Anyone can deposit IF they're KYC-verified
function deposit(uint256 assets, address receiver) external returns (uint256) {
    // No special permission needed
    // KYC check happens at mint() when shares are created
}

Why?

• Carriers top up wallets around the clock and cannot wait for manual approval
• KYC gates entry, so deposits themselves need no extra permission
• A deployed telecom integration confirms carrier identity

2. Dual Authorization for Withdrawals

A. Direct Transfer (owner withdraws their own funds)

function transfer(address to, uint256 value) public override {
    _spendAllowance(msg.sender, msg.sender, value); // ← Needs self-allowance permit!
    super.transfer(to, value);
}

Why self-allowance required?

• Open disputes must close before a carrier can withdraw
• Fraud investigations require funds to stay locked
• AML checks gate large withdrawals
• Carriers must keep enough liquidity to cover ongoing settlements
• The settlement platform controls withdrawal timing

B. Third-Party Transfer (authorized party withdraws on owner’s behalf)

function transferFrom(address from, address to, uint256 value) public override {
    _spendAllowance(from, from, value);        // ← Platform authorization (self-allowance)
    return super.transferFrom(from, to, value); // ← Owner delegation (caller allowance)
}

Why BOTH allowances required?

The transfer needs dual authorization:

1. Self-Allowance (allowance[from][from]): Platform/validator permission
   • “Settlement platform permits this carrier to withdraw funds”
   • Set by: Validator via permit signature
   • Checks: No outstanding settlements, no disputes, compliance verified
2. Caller Allowance (allowance[from][caller]): Owner delegation
   • “Carrier delegates authority to this third party”
   • Set by: Carrier via standard approve()
   • Enables: Smart contract automation, authorized operators

Real-World Example:

Carrier A wants to use InvoicePaymentContract to auto-pay suppliers:

Step 1: Request platform permission
→ Carrier A requests withdrawal clearance from WRAPX
→ WRAPX verifies: no disputes, sufficient balance, compliance OK
→ WRAPX issues permit: allowance[CarrierA][CarrierA] = 1M USDC

Step 2: Delegate to smart contract
→ Carrier A: approve(InvoicePaymentContract, 500k USDC)
→ allowance[CarrierA][InvoicePaymentContract] = 500k

Step 3: Automated payment execution
→ InvoicePaymentContract calls: transferFrom(CarrierA, Supplier, 100k)
→ Checks platform authorization: allowance[CarrierA][CarrierA] ≥ 100k ✓
→ Checks owner delegation: allowance[CarrierA][Contract] ≥ 100k ✓
→ Payment succeeds, both allowances reduced by 100k

Benefits:

• The platform blocks unauthorized withdrawals while carriers delegate to trusted third parties
• Smart contracts can participate once the platform approves
• Platform limits and carrier-set limits are independent, so each can be sized separately

3. Batch Settlement Optimization

function batchTransfers(
    address[] calldata debtors,
    address[] calldata creditors,
    uint256[] calldata amounts
) external onlyValidator nonReentrant returns (bool)

Why?

• Gas Efficiency: Thousands of inter-carrier transactions settle each month; batching keeps costs manageable
• Netting: Circular debts (A owes B, B owes C, C owes A) collapse to a single net transfer
• Atomic Settlement: All transfers succeed together or all revert, preventing partial settlement
• Regulatory Audit Trail: One on-chain transaction covers a full settlement period

Example Optimization:

Without netting: 1000 individual transfers = 51M gas
With netting:    200 net transfers = 10M gas
Savings:         80% gas reduction

4. rBalance System for Investment Tracking

// Tracks investment contract's funds: available vs. invested
_balances[investmentContract]  // Available for funding
_rBalances[investmentContract] // Invested in deals (not yet returned)

• _balances[investmentContract] - Available for funding
• _rBalances[investmentContract] - Invested in deals (not yet returned)

Why?

• Investment Tracking: The investment contract deploys capital into telecom deals and needs a separate counter for funds in play
• Yield Distribution: When deals close profitably, the platform adjusts rBalance to record returns
• Liquidity Management: Separates funds available for new deals from capital locked in existing ones
• Regulatory Reporting: Liquid funds and invested capital appear as distinct line items

Note: Carriers do not get rBalance tracking. Only the investment contract (ShareTokenUpgradeable) uses rBalance to track deployed capital and returns.

Example:

Investment contract (ShareTokenUpgradeable) has 1M USDC deposited in settlement layer:
• _balances[investmentContract] = 600k (available for funding new deals)
• _rBalances[investmentContract] = 400k (invested in deals, earning yield)

When deal returns 20% profit:
• adjustrBalance(investmentContract, 400k invested, 480k returned)
• _balances[investmentContract] = 600k (unchanged - still available)
• _rBalances[investmentContract] = 480k (increased from 400k)
• Investment contract earned 80k profit (480k - 400k)

TIER 4B: Investment Layer (Upgradeable)

Purpose: Investment Capital for Telecom Deals

Primary Users: Investors (not telecom carriers)

Core Function: Collect investment capital and deploy it into the settlement contract to fund telecom traffic deals

Use Case Flow

┌─────────────────────────────────────────────────────────────────────┐
│                    INVESTMENT FLOW                                  │
└─────────────────────────────────────────────────────────────────────┘

Step 1: Investor Onboarding
────────────────────────────
Investor deposits USDC → ERC7575VaultUpgradeable

Request → Fulfill → Claim (ERC-7540 async flow)
• Request: Investor transfers USDC to vault
• Fulfill: Investment Manager converts to shares (when ready)
• Claim: Investor receives duPRT shares

Step 2: Investment Deployment
──────────────────────────────
Investment Manager takes vault's idle USDC and invests:

investAssets(amount) → deposits into WERC7575Vault (Settlement Layer)

WERC7575Vault mints settlement position to ShareTokenUpgradeable (internal)

ShareTokenUpgradeable holds settlement backing on behalf of investors

Step 3: Telecom Deal Funding
─────────────────────────────
Investment capital in Settlement Layer used for:
• Funding carrier prepayments
• Working capital for voice traffic deals
• Margin for settlement float
• Emergency liquidity reserves

Step 4: Yield Generation
────────────────────────
Telecom deals generate profit:
• Settlement fees from carriers
• Voice traffic margins
• Discount on prepayments

Settlement platform adjusts rBalance:
adjustrBalance(ShareTokenUpgradeable, invested, returned)

Step 5: Investor Redemption
────────────────────────────
Investor wants to exit:

• Request redemption of duPRT shares
• Investment Manager withdraws from Settlement Layer
• Investor receives USDC + profit

Key Design Rationale: Investment Layer

1. Async Operations (ERC-7540)

// Request → Fulfill → Claim
function requestDeposit(uint256 assets, address controller, address owner)
function fulfillDeposit(address controller, uint256 assets)
function deposit(uint256 assets, address receiver)

Why?

• Capital Efficiency: The Investment Manager batches deposits when suitable deals appear
• Liquidity Management: Instant execution is not required; queuing deposits preserves flexibility
• Risk Management: The Investment Manager can delay fulfillment during high volatility

2. Investment into Settlement Contract

function investAssets(uint256 amount) external returns (uint256 shares) {
    // Deposit into WERC7575Vault (Settlement Layer)
    shares = IERC7575($.investmentVault).deposit(amount, $.shareToken);
}

Why?

• Direct Exposure: Investors earn yield from real telecom settlements, not synthetic products
• Transparent: Capital flows into the operational contract with a clear on-chain record
• Measurable: The settlement position tracks on-chain through the internal layer
• Liquid: The Investment Manager withdraws from settlement when needed, subject to permit approval

3. Upgradeable Architecture

contract ERC7575VaultUpgradeable is UUPSUpgradeable, OwnableUpgradeable

Why?

• Regulatory Adaptation: Investment products change with compliance requirements
• Feature Additions: New investment strategies slot in without redeploying the settlement layer
• Bug Fixes: Patches apply without migrating carrier funds
• Separation of maturity: The settlement layer is battle-tested and stays fixed; the investment layer evolves independently

System Interaction

Two Layers Working Together

Capital Flow

INVESTORS                    INVESTMENT LAYER              SETTLEMENT LAYER              CARRIERS
   │                              │                              │                          │
   │ 1. Deposit USDC              │                              │                          │
   ├─────────────────────────────►│                              │                          │
   │                              │                              │                          │
   │                              │ 2. Invest USDC               │                          │
   │                              ├─────────────────────────────►│                          │
   │                              │                              │                          │
   │                              │    (settlement to            │                          │
   │                              │◄─────ShareToken)             │                          │
   │                              │                              │                          │
   │                              │                              │ 3. Fund telecom deals    │
   │                              │                              ├─────────────────────────►│
   │                              │                              │                          │
   │                              │                              │ 4. Settlements & fees    │
   │                              │                              │◄─────────────────────────┤
   │                              │                              │                          │
   │                              │ 5. Yield generated           │                          │
   │                              │    (rBalance adjustments)    │                          │
   │                              │◄─────────────────────────────┤                          │
   │                              │                              │                          │
   │ 6. Redeem + profit           │                              │                          │
   │◄─────────────────────────────┤                              │                          │
   │                              │                              │                          │

Yield Generation Mechanism

The Settlement Layer earns from four sources:

• Settlement Fees: Carriers pay a fee per settlement
• Voice Traffic Margins: The platform buys and sells voice minutes at a spread
• Prepayment Discount: Carriers prepay for volume and receive a rate discount; the platform captures the margin
• Liquidity Services: Carriers pay a premium for instant settlement

Profit Distribution:

1. The settlement platform calculates returns per period
2. It calls adjustrBalance() on ShareTokenUpgradeable’s position
3. duPRT share price rises to reflect the higher backing
4. Investors redeem duPRT for the underlying stablecoins at the new price

Example: End-to-End Flow

Month 1:
────────
• Investor deposits 100k USDC → receives 100k duPRT shares
• Investment Manager invests 100k USDC → Settlement Layer
• Settlement Layer records backing → ShareTokenUpgradeable → investors hold **duPRT**
• Investment used to fund Carrier A's traffic deals

Month 2:
────────
• Settlement activity generates 10k profit
• Settlement platform adjusts: adjustrBalance(ShareToken, 100k, 110k)
• ShareTokenUpgradeable now has 110k value in Settlement Layer
• duPRT share price: 110k / 100k = 1.10 USDC per duPRT

Month 3:
────────
• Investor redeems 100k duPRT shares
• Investment Manager withdraws 110k USDC from Settlement Layer
• Investor receives 110k USDC
• Profit: 10k USDC (10% return)

Why Two Separate Systems?

Separation of Concerns

Why Settlement is Non-Upgradeable

Stability is the priority:

• The layer holds millions in carrier funds; any logic change carries outsized risk
• Real-time settlements must not fail
• Carriers build operational systems on top of it and need predictable behavior
• Battle-tested code accumulates safety over time; upgradeability discards that history
• Regulatory approval ties the contract to a specific implementation

Why Investment is Upgradeable

Flexibility matters here:

• Investment products change with markets and regulation
• New yield strategies slot in without touching carrier settlement
• Bugs can be patched without redeploying the settlement layer
• The Investment Manager adapts the product as conditions shift

Centralization Rationale

Settlement Layer Centralization

Why WRAPX (Validator) controls withdrawals:

Real-world scenario:
─────────────────────
Carrier A withdraws 1M USDC
BUT they have 500k outstanding settlement with Carrier B
PROBLEM: Carrier B cannot settle now!

Solution: WRAPX permit system
────────────────────────────────────
Carrier A requests withdrawal → WRAPX checks via COMMTRADE:
  ✓ No outstanding disputes (COMMTRADE confirms)
  ✓ No pending settlements (COMMTRADE confirms)
  ✓ Regulatory compliance (KYC status current)
  ✗ Large withdrawal → manual review

Only after approval → WRAPX issues permit signature → withdrawal succeeds

Why WRAPX (Validator) batches settlements:

Without batching (direct OSS/BSS → blockchain):
───────────────────────────────────────────────
1000 carriers × 100 transactions each = 100,000 individual blockchain transfers
Cost: Prohibitively expensive in gas
Risk: Some transfers fail = inconsistent state
No optimization possible

With multi-tier architecture (OSS/BSS → COMMTRADE → WRAPX → blockchain):
─────────────────────────────────────────────────────────────────────────
TIER 1 (OSS/BSS): Generates CDRs for all voice traffic
TIER 2 (COMMTRADE):
  • Aggregates CDRs
  • Calculates net positions
  • Sends individual settlement instructions to WRAPX
TIER 3 (WRAPX):
  • Receives individual settlement instructions from COMMTRADE
  • Batches multiple instructions together
  • Optimizes with netting algorithm
  • Pushes single atomic batch to blockchain
TIER 4 (Blockchain): Executes batched settlement

Result: 100,000 CDRs → 5,000 settlement instructions → 200 batched blockchain txs
Cost: 95% gas savings
Risk: All-or-nothing = consistent state
Benefit: COMMTRADE handles complex rate logic, WRAPX optimizes blockchain efficiency

Why KYC is required:

Regulatory requirement:
──────────────────────
Telecom settlements = financial services
Multi-jurisdiction carriers = AML compliance
Large transaction volumes = monitoring required
Fraudulent carriers = industry risk

Solution: KYC before wallet creation
────────────────────────────────────
Every carrier verified before COMMTRADE integration
Telecom OSS/BSS integration = identity verification
WRAPX maintains KYC status
Ongoing monitoring via COMMTRADE suspicious activity detection

Why the multi-tier architecture (OSS/BSS → COMMTRADE → WRAPX → Blockchain):

Single-tier approach problems:
──────────────────────────────
❌ Every CDR becomes a blockchain transaction = cost prohibitive
❌ Rate logic on-chain = complex, expensive, hard to update
❌ OSS/BSS systems can't directly interact with blockchain
❌ No optimization layer for gas efficiency
❌ Dispute resolution requires on-chain arbitration

Multi-tier benefits:
────────────────────
✅ TIER 1 (OSS/BSS): Legacy systems work as-is, no blockchain knowledge needed
✅ TIER 2 (COMMTRADE):
   • Complex rate logic off-chain, flexible, updateable
   • Aggregates CDRs and calculates net positions
   • Sends individual settlement instructions (not batches)
✅ TIER 3 (WRAPX):
   • Receives individual instructions from COMMTRADE
   • Batches instructions for blockchain efficiency
   • Gas optimization through netting algorithm
   • Dispute handling and permit management
✅ TIER 4 (Blockchain): Immutable settlement record, transparent, auditable

Cost efficiency:
───────────────
1M CDRs/month → COMMTRADE aggregates and sends instructions →
WRAPX batches into ~ X blockchain tx/day = 30X blockchain txs/month
Without tiers: 1M blockchain txs/month (33,333x/X more expensive!)

Investment Layer Centralization

Why the Investment Manager controls fulfillment:

Capital efficiency scenario:
───────────────────────────
100 investors deposit throughout the month
Each wants immediate shares
BUT only deploy capital when large deal available

Solution: Async fulfillment
───────────────────────────
Investors request deposits (assets secured)
Investment Manager waits for optimal deal
Fulfills all deposits together when deal ready
Capital efficiency: 100% deployed vs. 20% idle

Why the Investment Manager controls timing:

Risk management scenario:
────────────────────────
High volatility period in telecom markets
Investor requests redemption
BUT withdrawing now = selling at loss

Solution: Managed redemption
────────────────────────────
Investment Manager delays fulfillment
Waits for markets to stabilize
Fulfills when profitable exit available
Protects investor returns

Security Considerations

Settlement Layer Security Priorities

Critical Invariants:

1. Zero-Sum Settlements: Batch transfers neither create nor destroy value
2. Liquidity Protection: Reserved settlement funds cannot be invested
3. Withdrawal Safety: The permit system blocks unauthorized exits
4. Atomic Settlements: All transfers in a batch succeed together or all revert

Attack Vectors to Consider:

• Manipulating batch netting calculations to extract value
• Withdrawing mid-settlement to force a failure
• Double-spending settlement obligations
• Injecting false rBalance adjustments to fabricate profits

Investment Layer Security Priorities

Critical Invariants:

1. Reserved Asset Protection: Pending and claimable funds stay off-limits for investment
2. Share Accounting: duPRT is backed by vault assets and settlement positions at all times
3. Fulfillment Accuracy: Pending-to-claimable conversions must be exact
4. Investment Safety: The contract cannot invest beyond the available balance

Attack Vectors to Consider:

• Inflating the reserved-asset calculation to justify over-investment
• Exploiting the async flow to claim assets twice
• Front-running fulfillment transactions
• Corrupting storage slots during contract upgrades

Integration Notes for Auditors

Understanding Context is Critical

WERC7575 is a settlement platform for commercial counterparties, not a consumer wallet. Restricted withdrawals are not censorship: banks freeze accounts during fraud investigations, escrows hold funds until counterparty release, and clearing houses lock positions through the settlement period. The same logic applies here.

The correct audit questions: Can withdrawal permission be abused to steal funds? Do safeguards exist against a validator blocking legitimate withdrawals?

What Makes This Different from DeFi

These differences are the business model, not defects.

Conclusion

The WERC7575 system runs two distinct layers:

1. Settlement Layer: An operational platform for telecom carrier settlements
   • Permissionless deposits, because carriers top up around the clock
   • Permission-required withdrawals, to protect settlement integrity
   • Batch settlement with netting, for gas efficiency
   • Non-upgradeable, for stability under regulatory oversight
2. Investment Layer: Capital deployment into settlement operations
   • Async deposit and redemption flows, for capital efficiency
   • Investment Manager controls timing, to manage risk
   • Upgradeable architecture, to adapt to regulatory changes
   • Yield sourced from real telecom settlement activity

Both layers are centralized by deliberate design, not by oversight. The business requires settlement control, KYC gating, and managed redemption.

Auditors should focus on: security vulnerabilities within the intended design, business logic correctness, standards compliance, and upgrade safety.

Centralization itself, DeFi comparisons, and philosophical objections are out of scope for a contract audit.

Document Version: 1.0

Last Updated: 2025-01-05

Context: Telecom Wholesale Voice Traffic Settlement + Investment Platform

Use Cases

Introduction

Invoices are the formal records of commercial activity: they document what was sold, when, in what quantity, and at what price, and they establish legally binding payment terms. Businesses track accounts receivable (what customers owe) and accounts payable (what the business owes suppliers) through these records.

Businesses issue invoices in different forms depending on the transaction: standard, commercial, proforma, recurring, or VAT. All require a unique invoice number, dates, pricing, taxes, and payment terms. Businesses use invoices to accelerate collections, reconcile sales, and resolve disputes.

Traditional invoice finance gives businesses working capital before customers pay. A lender advances 80–90% of an invoice, collects payment later, and returns the balance minus fees. Lenders structure this as invoice factoring, where the lender collects, or invoice discounting, where the business collects.

Use Case 1 Postpaid Funding for Telecom Carrier Voice Traffic Use Case 2 Postpaid Funding for Application 2 Phone (A2P) Messaging (SMS) Traffic Use Case 3 Prepayment Funding for SMS Firewall & Exclusive Termination Deals Use Case 4 Prepayment Funding for Special Rate Carrier Voice Termination Use Case 5 Funding Wireless POTS Deployments in the USA Use Case 6 Import/Export Finance for Commodities & Goods Use Case 7 Real Estate Commission Funding in the UAE Use Case 8 Hardware & Machinery Financing Use Case 9 Merchant Credit Lines for Retail and Services

Use Case 1

Postpaid Funding for Telecom Carrier Voice Traffic

Wholesale telecom carriers form the global backbone for voice traffic. They buy and resell large volumes of call termination, route traffic between networks, and enable VoIP, mobile calling, and unified communications. The industry has shifted to IP-based routing and cloud platforms, with 5G expanding capacity and cutting latency.

Carriers use Least Cost Routing (LCR) to select the cheapest routes in milliseconds from live rate decks, while holding quality thresholds like ASR, ACD, and post-dial delay. Margins are thin, so accurate rate data, quality monitoring, and redundancy determine profitability. Where termination rates or regulatory structures diverge, arbitrage opportunities arise, making transparent routing and audit trails essential.

Billing and settlement run on Call Detail Records (CDRs). CDRs capture call metadata: origin, destination, timestamps, duration, routing, and termination cause. Carriers normalize, rate, and aggregate these records into itemized invoices, then use them for reconciliation, dispute resolution, and revenue assurance across inter-carrier relationships.

Use Case 2

Postpaid Funding for Application 2 Phone (A2P) Messaging (SMS) Traffic

The A2P messaging industry covers automated business-to-consumer communications delivered through SMS, WhatsApp, and RCS: alerts, marketing, one-time passwords, and customer notifications. E-commerce and banking pull growth, as both sectors need secure authentication and real-time engagement. SMS commands the largest share of spend even as OTT platforms gain volume.

Security and compliance (2FA, fraud prevention), platform consolidation among CPaaS leaders like Twilio, Sinch, Infobip, and Route Mobile, and regulatory oversight shape market dynamics. The market runs to multi-billion dollar scale and is projected to exceed $90–125B in the early 2030s, with AI-driven personalization and channel orchestration driving further investment.

Aggregators and carriers use Least Cost Routing (LCR) to select the cheapest compliant paths in real time, balancing cost against delivery quality. Grey routes, which disguise A2P traffic as P2P to cut costs, create blocking, lower delivery rates, and fraud exposure.

Price gaps between premium white routes and lower-cost grey routes create arbitrage. Blended pricing reduces enterprise costs but leaks revenue for mobile network operators, pushing stronger enforcement and a shift toward verified routes and OTT alternatives.

A2P invoicing runs on per-message rating and detailed charging models. CDRs track sender IDs, destination networks, delivery status, message type, and charges, enabling accurate billing, 10DLC compliance fees, and pass-through termination charges. Carriers need rating, routing, and trading platforms to preserve margins across diverse rate decks.

SMS firewalls shape settlement economics by filtering grey traffic and monetizing legitimate A2P delivery. Operators run AI-driven security to detect AIT fraud, enforce sender verification, and bill only authorized traffic.

Mudarabah Principles for Traffic Funding

SukukFi applies a Mudarabah structure to fund postpaid traffic, paying suppliers and distributing profits according to pre-agreed terms:

• Capital deployment: Investment vaults (rab al-mal) provide funds to an operating entity (mudarib) on CommTrade to serve a pre-approved debtor, such as a Tier 1 operator or hyperscaler.
• Vendor payments: CommTrade automates supplier payments for the debtor’s traffic while enforcing profitability thresholds.
• Real-time profit control: CommTrade validates traffic and margins, removing unprofitable routes to protect returns.
• Profit realization: When the debtor pays the invoice, SukukFi collects funds into a fiat account, converts them to stablecoins, and distributes them to the investment vault and the mudarib according to the agreed profit split.

Comparison to Traditional Invoice Finance

• Operational enforcement: CommTrade enforces routing and profitability in real time, cutting leakage and keeping funded traffic profitable.
• Settlement-grade audit trail: CDR-based validation and smart contract controls give transparent, verifiable cash-flow tracking.

Use Case 3

Prepayment Funding for SMS Firewall & Exclusive Termination Deals

Mobile network operators use exclusive A2P gateway agreements to secure their networks, cut fraud, and monetize international A2P traffic. Under these arrangements, a single partner manages and terminates all inbound messaging, replacing fragmented multi-aggregator routing.

Exclusive gateways protect revenue by shutting down grey routes, applying anti-fraud tooling, and enforcing high-quality delivery for OTPs and critical notifications. Many agreements cover A2P voice and flash calls alongside SMS, giving operators a single point of control for omnichannel security and compliance.

SMS firewall gateways classify traffic in real time, filter spam and phishing, enforce licensed routes, and produce analytics that support accurate billing. Operators preserve revenues and improve subscriber trust by blocking unauthorized traffic at the gateway level.

SMS firewall deals require the deploying operator to aggregate inbound market traffic, commit to minimum monthly volumes, and prepay for capacity over 6 to 24-month terms.

Use Case 4

Prepayment Funding for Special Rate Carrier Voice Termination

Carrier voice bilateral agreements define direct, negotiated routes for international voice traffic. Carriers set pricing, volumes, SLAs, and term commitments through these contracts, controlling quality and profitability without depending on hubs or transit.

Swap deals and special rate agreements are standard in wholesale voice. Carriers exchange traffic commitments to unlock better rates, then sell excess or discounted termination capacity to downstream customers, typically with prepayment commitments to secure volume and contain risk.

These structures cut costs and let carriers plan margins with confidence, while expanding coverage and holding service quality on high-volume routes.

Murabaha Principles for Prepayment Funding

SukukFi uses Murabaha to fund operating entities purchasing capacity from suppliers at cost plus a pre-agreed, disclosed markup payable over time.

SukukFi covers prepayments for firewall deployments, exclusive gateway capacity, and special-rate termination without interest-based lending.

• Asset-backed structure: Financing ties to telecom capacity, not unsecured cash lending.
• Direct vendor payment: SukukFi pays suppliers to maintain transparency and compliance.
• Known profit margin: SukukFi agrees the markup upfront, with clear repayment terms.
• Receivable security: SukukFi takes security over the operating entities’ debtor receivables and collects debtor payments through its banking infrastructure.

Murabaha vs Traditional Riba Based Finance

• Sharia compliance: The structure avoids riba and ties returns to real economic activity.

Use Case 5

Funding Wireless POTS Deployments in the USA

Wireless POTS replaces legacy copper landlines with LTE/5G or broadband adapters that deliver analog dial tone to alarm panels, elevator phones, and fax machines. As carriers retire copper networks and service mandates expire, businesses must migrate to remotely managed digital alternatives.

Rising costs for legacy lines, shrinking carrier support, and failover requirements in life-safety and compliance environments push that migration. Wireless POTS deployments require certified hardware purchased and installed at scale, backed by multi-year service contracts.

Murabaha Principles for Funding Wireless POTS Deployments in USA

SukukFi funds these deployments through Murabaha financing tied to the equipment and service contract, with repayments matched to recurring revenue over the contract term.

• Contract-linked funding: SukukFi structures financing around recurring revenue agreements, over 36 months.
• Direct vendor payment: SukukFi pays approved suppliers to procure deployment hardware.
• Known profit margin: Cost plus markup is disclosed upfront with clear repayment terms.
• Receivable security: SukukFi secures the contract receivables and collects customer payments through its banking infrastructure.

Sharia conclusion: The structure is asset-backed and transparent, avoiding riba by tying funding to real economic activity and measurable service delivery.

Comparison to interest-based financing: Loans charge interest on cash advances. Murabaha financing links returns to tangible equipment and disclosed markups, giving operators predictable costs while aligning funding to delivered capacity and contracted cash flows.

Use Case 6

Import/Export Finance for Commodities & Goods

Exporters must fund production, shipping, and customs before any buyer payment arrives. Importers need time to sell inventory after delivery. That working capital gap is what traditional finance addresses with letters of credit, guarantees, or short-term loans.

SukukFi finances the full trade cycle: sourcing goods, paying suppliers, covering freight and insurance, and storing inventory in bonded warehouses until distribution. Both exporters and importers get funding tied to underlying goods and receivables, with repayment schedules they can predict.

How SukukFi Enables End-to-End Trade Finance

• Supplier funding: SukukFi pays producers upfront to secure inventory and manufacturing capacity.
• Trade logistics: SukukFi covers shipping, customs, and insurance to keep goods moving across borders.
• Bonded warehousing: SukukFi stores inventory under customs control, deferring duties and VAT until release.
• Distribution finance: Repayments are collected as the business sells goods to end customers, aligning cash flow to sales.

Shariah-Based Structuring

• Mudarabah: Capital providers fund trade activity while operating partners manage procurement and logistics, sharing profits by agreed ratios.
• Murabaha: SukukFi purchases goods and resells to the business at a disclosed markup, payable over time.
• Musharakah: SukukFi and the business jointly participate in trade inventory, sharing both risk and profit from actual sales.

Sharia conclusion: Funding stays asset-backed and tied to real trade flows, avoiding riba by linking returns to underlying goods, services, and sales performance.

Comparison to Traditional Trade Finance

• Letters of credit: Conventional LCs rely on bank guarantees and interest-bearing credit. SukukFi structures funding through asset-based trade transactions.
• Bank guarantees: Traditional guarantees charge fees for credit risk coverage. SukukFi allocates capital to goods and logistics with transparent profit sharing.
• Working capital loans: Interest-based facilities charge for the time value of money. SukukFi uses Murabaha or Musharakah to tie returns to real trade assets.
• Invoice discounting: Conventional finance advances cash at a discount. SukukFi funds receivables through asset-backed structures with disclosed profit margins.

Use Case 7

Real Estate Commission Funding in the UAE

UAE developers pay broker commissions on off-plan sales in staged payouts that can stretch 90–120 days after booking. Despite strong market volumes and high headline commissions, brokerages and their sales agents carry that cash-flow gap.

SukukFi provides commission factoring to brokerages, advancing cash against confirmed developer receivables. Brokerages can pay sales agents faster and stay competitive for top-performing talent and developer allocations.

Dubai’s off-plan market reached roughly AED 254 billion (USD ~69 billion) in 2024, with off-plan sales dominating transaction volume. A reasonable 2026 outlook for Dubai off-plan activity is AED 300–400 billion (USD ~82–109 billion). At a typical 5% commission, the addressable commission pool runs to roughly AED 15–20 billion (USD ~4.1–5.4 billion) annually for off-plan sales alone.

Mudarabah: Capital providers fund commission advances while brokers manage sales execution, sharing profits by agreed ratios. Returns tie to realized commissions and collections, keeping the structure asset-backed and aligned with actual sales activity.

Faster commission payouts let brokerages attract and retain top sales agents, pay ahead of peers, and secure better developer allocations. That talent concentration improves conversion rates and strengthens access to the best off-plan deal flow, compounding broker performance over time.

Traditional invoice factoring relies on interest-based discounting and faces limited appetite from Western financiers reluctant to underwrite UAE and GCC developer receivables due to jurisdictional risk perceptions. Mudarabah provides risk-sharing capital aligned with commissions actually earned, without charging interest on short-term advances.

Use Case 8

Hardware & Machinery Financing

SukukFi finances equipment across telecom, retail, logistics, and technology by funding asset acquisition or leasing and tying repayments to operating revenues. Businesses get asset-heavy growth without large upfront capital outlays.

Murabaha: SukukFi acquires equipment, handsets, POS terminals, servers, or machinery, and sells it to the customer at a disclosed markup with deferred payments, aligning cash flow to revenue collection.

Ijara: SukukFi retains ownership and leases the asset to the customer at a fixed rental, with optional transfer of ownership at term end. This suits fast-depreciating technology or assets that need periodic upgrades.

Breadth of Opportunity

• Telecom handset financing: The mobile operator serves as debtor, with repayments drawn from subscriber airtime and device plans.
• POS systems for merchants: SukukFi finances terminals and software with repayments linked to card-present transaction revenue.
• AI and cloud infrastructure: Tech companies finance bare-metal servers, GPU clusters, or networking gear and repay from service revenues.
• Industrial machinery: SukukFi funds manufacturing equipment, CNC machines, and processing lines with repayments tied to production output.
• Logistics assets: Warehousing automation, forklifts, and fleet equipment are financed and repaid from distribution revenues.

Sharia conclusion: Murabaha and Ijara keep returns asset-backed and transparent, linking profit to real equipment usage and customer revenues rather than interest on cash lending.

Use Case 9

Merchant Credit Lines for Retail and Services

Traditional merchant cash advances (MCAs) give merchants fast liquidity by taking a fixed share of daily card receipts, but price that liquidity like interest. SukukFi replaces MCA-style facilities with Sharia structures that fund real inventory and working capital without interest-based lending.

A grocery retailer, for example, uses a SukukFi credit line to pay wholesalers for inventory. Repayments come from point-of-sale (POS) revenues as goods sell, matching cash outflows to business performance.

Sharia Structuring

• Murabaha: SukukFi purchases inventory or goods from suppliers and sells them to the merchant at a disclosed markup, payable over time. Financing stays asset-backed and tied to real trade flows.
• Mudarabah: SukukFi provides capital into the trading activity, paying suppliers on behalf of the merchant. The merchant manages procurement and sales, and profits are shared by agreed ratios linked to actual sales performance.

Use Cases Across Merchant Segments

• Grocery and retail: SukukFi finances inventory purchases with repayments from POS receipts.
• Restaurants and cafes: SukukFi provides working capital for food suppliers and payroll, repaid from daily card sales.
• Pharmacies and medical suppliers: SukukFi funds stock replenishment in line with sales velocity.
• Services and salons: Equipment and consumables are financed with revenue-linked repayments.

Sharia conclusion: Murabaha and Mudarabah tie returns to real goods and business performance, giving merchants a transparent alternative to MCA products with flexible, revenue-aligned repayment schedules.

Risk Management

Business Risk Assessment Investor Protection

Business Risk Assessment

SukukFi assesses each financing arrangement before a pool opens and monitors it throughout the credit cycle. Assessment focuses on transaction quality rather than operational history alone.

Credit assessment

SukukFi evaluates borrower creditworthiness using telecom industry expertise and knowledge of the specific counterparties involved. For telecom wholesale financing, the key question is whether the buyers, such as Tier 1 operators, hyperscalers, and government departments, have the credit quality and payment track record to settle invoices reliably.

Transaction-level verification

CommTrade checks each transaction for commercial viability before settlement. On-chain settlement records land on Berachain via the WrapX layer, creating an immutable audit trail for every funded invoice. This transaction-level visibility matters in telecom, where settlement volume is high and reconciliation is operationally complex.

Payment processor assessment

SukukFi uses a regulated payment processor to collect obligor fiat invoice receipts and convert them to stablecoins for vault repayment. The processor is FINTRAC-registered and holds a Bank of Canada Payment Service Provider registration. LP capital sits in on-chain vault contracts and is not held or custodied by the processor at any point. Processor exposure is operational in nature: the question is whether fiat collections can be received and converted on schedule, not whether LP principal is safe with the processor.

SukukFi’s assessment of this risk considers: the processor’s regulatory standing; the contractual protections in the services agreement (segregated customer accounts, defined settlement windows, freeze notification obligations, and termination rights on insolvency); the processor’s role as a pipeline rather than a custodian; and SukukFi’s operational capacity to substitute processors within the contractual notice period. This risk is disclosed as medium in each vault’s risk tab. Specific contractual terms are subject to execution of the final services agreement.

Capital provider responsibility

Each pool’s documentation (see PrimeTel Vault for the live example) provides the risk assessment for that specific borrower and structure. You make the final allocation decision based on that information.

Investor Protection

For live pool risk disclosures, see PrimeTel Vault. Protocol metrics are defined in Protocol Statistics.

Transaction-backed financing

Capital deploys into verified trade flows: real invoices with identified buyers. The CommTrade platform validates each transaction before settlement. On-chain records on Berachain provide an immutable audit trail you can verify independently.

Ongoing monitoring

CommTrade tracks business operations and settlement activity throughout the financing period. Payment anomalies flag before they escalate.

No credit insurance

SukukFi does not provide credit insurance. Under Mudarabah and Murabaha structures, capital providers bear the credit risk of the underlying trade. This is a requirement of Sharia-compliant financing: conventional insurance on profit-sharing arrangements is impermissible. The trade-off is that returns reflect actual risk, not a guaranteed yield net of hidden insurance costs.

Smart contract audits

Vault contracts on Berachain are audited. Reports are at Security Audits.

Liquidity & Redemption

Withdrawal Process Secondary Market Liquidity

Withdrawal Process

Investment vaults use ERC-7540 asynchronous redemptions: Request → Fulfill → Claim.

When liquidity is available in the vault

If stablecoins are idle and not deployed, the Investment Manager can fulfill redemption requests sooner after processing the batch.

When capital is deployed

If capital is active in the credit line, redemptions queue until liquidity returns from business repayments or new deposits. For PrimeTel, timing ties to invoice cycles. See PrimeTel Vault.

Steps

1. Submit a redeem request with your duPRT shares
2. The Investment Manager fulfills when liquidity allows
3. Claim stablecoins to your wallet

Secondary exit

A duPRT market on Kodiak is planned but not yet live; no pool exists today, so there is currently no secondary exit. See Secondary Market Liquidity.

Step-by-step: How to Redeem & Withdraw.

Settlement-layer withdrawals on CommTrade use a separate permissioned model. See Centralization Rationale.

Secondary Market Liquidity

duPRT is a standard ERC-20 token, so a secondary market on the Kodiak AMM is possible in principle. No duPRT pool exists on Kodiak today, because the duPRT float is not yet large enough to seed one, so there is currently no secondary exit. This page describes how it will work once a pool is created.

How secondary exit works

1. Go to Kodiak Finance on Berachain and find the duPRT trading pair (once a pool has been created).
2. Sell your duPRT for the paired stablecoin.
3. Stablecoins arrive in your wallet immediately, subject to available liquidity and slippage.

Considerations

• Slippage: a Kodiak pool would likely have limited depth, particularly for large positions. Check the price impact before executing.
• Market price vs NAV: a Kodiak price would reflect supply and demand and could sit at a discount or premium to the vault’s net asset value.
• LP opportunities: once a pool exists you will be able to provide liquidity to it on Kodiak and earn trading fees. This adds AMM impermanent loss risk on top of the underlying pool risk.

For the primary redemption path through the vault, see Withdrawal Process and How to Redeem & Withdraw.

Platform Fees

Fee Structure

Performance Fees: SukukFi takes up to 20% of profit distributed to investors. SukukFi may waive this fee for specific pools, campaigns, or periods. Pool documentation and the app display each pool’s fee treatment at deposit. PrimeTel currently runs with the performance fee waived.

Settlement Fees: SukukFi charges businesses 0.15% on CommTrade when settling payments with suppliers.

Telecom Transaction Fees: $0.00015 per voice, SMS, or data transaction on CommTrade (business-side).

No Management Fees: SukukFi charges investors no ongoing management fees.

No Withdrawal Fees: SukukFi charges investors no withdrawal fees on the investment vault layer.

LP Introducer Commission

SukukFi sets aside 5% of the protocol fee pool for the LP Introducer Commission: a monthly trUST payout to introducers who referred eligible depositors. SukukFi distributes this proportionally by introduced deployed capital. It does not affect investor returns. See Invite Code for full details.

Invite Code

Refer a new LP to any SukukFi vault, and when that LP deploys capital for 30 days or more you earn a monthly commission paid in trUST. The CommissionRegistry contract on Berachain mainnet handles code registration, LP linking, deployment tracking, and commission payouts. No intermediary, no off-chain state.

Who Is an Introducer?

An introducer brings new capital providers to SukukFi: a financial advisor directing clients toward DeFi yield, a fund operator bringing partners, or a business development contact onboarding institutional depositors. Any Berachain wallet can register a code with no approval process. Commission accrues once the referred LP’s capital is deployed and eligible.

Track A: LP Introducer Commission

• Rate: 5% of the protocol-wide fee pool per distribution period
• Weighting: Proportional to introduced deployed capital versus total deployed capital across all vaults
• Start condition: 30 days of continuous deployment (no cliff)
• Stop condition: Commission stops when the referred LP exits a vault
• Payment currency: trUST
• Frequency: Monthly

The pool is protocol-wide, not per-vault. Introducers earn proportionally to referred deployed capital across all vaults, so pushing LPs toward any particular pool offers no advantage.

Commission Calculation

Each month:

1. The protocol collects fees from vault activity across all active pools
2. 5% of those fees form the LP Introducer Commission pool
3. Each introducer’s share equals: eligible capital they introduced / total eligible deployed capital across the protocol
4. The operator transfers the resulting trUST directly to each introducer’s wallet via distribute()

Example:

• Total eligible deployed capital: $2,000,000
• Capital you introduced (all eligible): $200,000
• Your pool weight: 10%
• Total protocol fees this month: $80,000
• LP Introducer pool (5%): $4,000
• Your commission: $400 in trUST

Capital deployed fewer than 30 days does not count in a given distribution. Capital deployed on day 28 counts in the next month’s calculation.

Paid in trUST, Redeemed Through the Same Controls

Commission is paid in trUST, SukukFi’s settlement token, backed 1:1 by stablecoins. To convert it to a stablecoin, submit a redemption request through the app. The SukukFi operator approves it before the vault releases the underlying stablecoin, the same redemption that applies to all trUST.

That operator review is one of the program’s controls. It works with the 30-day deployment minimum and the automatic stop when a referred LP exits. Together these keep commissions tied to capital that stays. trUST is operator-reviewed on both minting and redemption, so payouts run through the operator rather than an open on-chain loop.

The 30-Day Minimum

A 6-month cliff would mean earning nothing for half a year while your referred LP’s capital generates protocol revenue from day one. That gap makes introducing economically irrational.

30 days works differently. Capital deployed for one full month counts in the next distribution. Commission accrues from month 2 onward for as long as the LP stays deployed. No cliff, no ramp, no vesting.

The window is long enough to rule out flash deposits. LP capital in ERC-7540 async vaults is naturally sticky: 15-day invoice settlement cycles make early withdrawal rare. 30 days confirms real deployment without penalising introducers with a long wait.

When an LP withdraws, their contribution drops to zero in the next pool weight calculation and commission stops. No clawback. The stop is automatic.

How the Invite Code Works

Each introducer gets a unique bytes32 code derived from their wallet address:

code = keccak256(abi.encodePacked(introducerAddress, 0))

No server generates this and no database stores it. The same address always produces the same code. Any party can verify a code’s origin on-chain by checking whether keccak256(abi.encodePacked(claimedAddress, 0)) matches the registered code.

Codes are first-come, first-served. One address, one code. The registry maps both directions: code to introducer and introducer to code.

A referral link takes the form:

https://app.sukuk.fi/?ref=0xYOUR_CODE_HEX#vault

When an LP clicks your link, the app saves the code. At deposit time, the app calls linkLP(code) on-chain. That link is permanent and cannot be updated.

Step-by-Step Flow

For Introducers

1. Register. Navigate to Invite Code in the app, connect your wallet, and click Register as Introducer. One transaction: registerCode(bytes32 code), where the code derives from your address. Once confirmed, your code is live.
2. Share your referral link. The app shows a shareable URL: app.sukuk.fi/?ref=0x...#vault. Share it.
3. LP deposits via your link. When the LP deposits, the app calls linkLP(yourCode) on their behalf. Your code is linked to their wallet on-chain.
4. Deployment gets recorded. The SukukFi operator calls recordDeployment(lpAddress) once the LP’s capital is active in a vault. This starts the 30-day clock. Your dashboard shows a countdown per referred LP.
5. Commission distributes monthly. After 30 days of deployment, the LP counts in the next pool weight calculation. The operator calls distribute(introducers[], amounts[]) and trUST lands in your wallet. Your Total Paid counter updates immediately.

For LPs Being Referred

Referred LPs do nothing differently. Arriving via a referral link, the app calls linkLP() at deposit time, in the same transaction flow as the deposit. No extra step, no additional gas.

An LP links once. Re-depositing later via a different link or without one leaves the original link in place. LPs cannot change their introducer after the first deposit.

LPs who deposit without a referral link have no introducer on their wallet. Their capital contributes to no one’s pool weight.

The Introducer Dashboard

The Invite Code view in the app shows three states:

Not connected: Prompt to connect wallet.

Connected, not registered: Three steps to onboard:

1. Connect your wallet (done)
2. Register as an introducer by sending registerCode()
3. Share your referral link

Connected and registered: Your introducer dashboard showing:

• Your Code: the bytes32 hex value registered to your address
• Your Referral Link: the shareable URL
• Referred LPs: count of wallets linked to your code
• Total Paid: cumulative trUST paid to you across all distributions
• Days Until Eligible: countdown for the nearest LP approaching 30 days

Smart Contract Reference

Key Functions

Distribution Mechanics

Each month: off-chain pool weight calculation, then a single on-chain settlement transaction.

At month end the protocol operator:

1. Identifies all LPs with a recorded deployment timestamp 30+ days old (isEligible())
2. Queries each LP’s linked introducer via getIntroducer()
3. Calculates each introducer’s pool weight: eligible introduced capital / total eligible deployed capital
4. Applies the 5% fee pool to compute each introducer’s trUST amount
5. Calls distribute(introducers[], amounts[]), pushing trUST to all qualifying introducers in one transaction

Every distribution is a traceable trUST transfer on Berachain. The totalPaid mapping updates in the same transaction, so the cumulative record is always current.

Frequently Asked Questions

Can I have multiple codes?

No. One address, one code. Register a second wallet if you need a separate code.

Can an LP change their referral link after depositing?

No. The link sets on the first deposit and cannot be changed. This prevents switching referrers after capital is already deployed.

What happens if my referred LP withdraws and re-deposits?

Withdrawal ends the deployment record and removes the LP from pool weight calculations. Re-depositing lets the operator call recordDeployment() again, restarting the 30-day clock. The original introducer link persists across the withdrawal and re-deposit.

Is there a minimum deposit size to qualify?

None at the CommissionRegistry level. Any LP with a recorded deployment contributes to pool weight, regardless of deposit size.

When exactly does the 30-day clock start?

When the operator calls recordDeployment(lpAddress), not at deposit time. A short lag exists between an LP’s ERC-7540 async deposit completing and the operator confirming deployment on-chain.

How do I know my referred LPs have been recorded?

Your introducer dashboard shows a countdown per referred LP. You can also call daysUntilEligible(lpAddress) on the contract directly; type(uint256).max means no deployment has been recorded yet.

Can I use my invite code to supplement my own yield?

Yes, with two wallets. Register an invite code on a second wallet, then deposit from your primary wallet using that second wallet’s referral link. Your primary wallet earns LP yield on its deployed capital; your second wallet earns commission on that same capital from the 5% introducer pool. That is additive yield, not a redirect of it. Single-wallet self-referral does not work the same way: commission on your own deposit from the same address is yield you were already receiving as an LP.

Is the code registered to my address or my ENS name?

Your raw EVM address. ENS names resolve to that address, and the contract uses the resolved value.

Smart Contracts (Berachain Mainnet)

Interact only with the proxy addresses below. Do not call internal implementation or WERC settlement contracts.

Network: Berachain Mainnet · Chain ID 80094 · Explorer: https://berascan.com

Share token

Vault proxies

Berascan has verified the contract ABI at each address above.

Access control

The contract ABI includes setKYCed(address controller, bool) and isKYCed(address). These functions appear in the repository ABIs but are not present in the deployed mainnet bytecode. Calling isKYCed on either the duPRT vault (0x1B61…) or the duPRT share token (0xf5Ba…) reverts as a nonexistent function, while other functions on the same contracts, such as isVaultActive() and name(), return correctly.

What this means for deposits: A wallet does not need to be whitelisted to call requestDeposit. A requestDeposit from a never-seen address reverts only on ERC20: transfer amount exceeds allowance, the standard token approval check, not on any KYC error. The claim step reverts with InsufficientClaimableAssets() when nothing has been fulfilled, again not a KYC error.

Upgradeability caveat: The vaults are UUPS-upgradeable. The current implementation does not enforce on-chain KYC for LP deposits. A future upgrade could change this. SukukFi will publish notice of any access control change before it takes effect.

Basis: This is empirical (eth_call) evidence against the live contracts on Berachain Mainnet, not source-read. The implementation source is not verified on Berascan. eth_call is reliable for determining whether a given call reverts and on what error, but it is not a substitute for a full source audit.

How TVL is calculated

totalAssets() is not a TVL figure. Per the vault source, totalAssets() deliberately excludes pending deposits, claimable redemptions, cancellations, and any capital already invested. It answers a narrower question: how much is available in this vault right now for a new investment or conversion calculation. Reading it as “how much has been deposited” undercounts the real figure, sometimes down to zero, even when real deposits are sitting in the vault as pending or invested capital.

The complete figure, per vault: take the vault’s raw asset balance (balanceOf of the underlying token at the vault address, equivalent to grossAssetBalance in getVaultMetrics()). This captures every state at once: idle, pending, claimable, and cancelled. It excludes only capital that has already moved elsewhere, which brings us to trUST.

duPRT and trUST do not double count. When the Investment Manager calls investAssets() on a duPRT vault, the underlying asset physically moves into the matching trUST vault for that same asset. duPRT’s own accounting stops counting it (per the exclusion above), and trUST’s totalAssets(), a plain balanceOf with no exclusions, now includes it. So the non-double-counting total across the protocol is: each duPRT vault’s raw balance, plus each trUST vault’s totalAssets(). Every dollar is counted exactly once, wherever it currently sits.

Basis: Confirmed by reading the vault source in sukukfi/security-audits and by direct eth_call against the live vaults, including tracing a duPRT vault’s investmentVault field to confirm it resolves to trUST’s vault for the same asset.

Protocol Statistics

The SukukFi app displays live on-chain metrics read directly from Berachain vault contracts. All figures update in real time when a wallet is connected; no server or oracle is involved.

For a full explanation of how redemptions and liquidity work, read How duPRT Redemptions Work.

Access & Compliance

Platform Access

The SukukFi dApp is accessible to any wallet on Berachain Mainnet with a supported stablecoin. Depositing into live vaults requires no identity verification (KYC).

The following persons are excluded from using the Platform:

• Persons located in, or nationals of, FATF-blacklisted jurisdictions (Tier 1, platform-wide block): North Korea, Iran, and Myanmar. See fatf-gafi.org for the authoritative current list. Access is geo-blocked at the infrastructure layer.
• Persons for whom vault participation would breach applicable law in their own jurisdiction, including applicable securities, investment, or financial services law.

The underlying smart contracts on Berachain are permissionless. Geo-blocking is enforced at the application layer. Circumventing geo-blocks from any excluded jurisdiction is a breach of the Terms of Use.

Jurisdiction Exclusions

SukukFi operates a two-tier jurisdiction exclusion policy.

Tier 1 (FATF Blacklist, platform-wide): North Korea, Iran, and Myanmar. All platform users in these jurisdictions are geo-blocked.

Tier 2 (CommTrade telecom onboarding, extended restricted jurisdictions): Carriers domiciled in the following jurisdictions are ineligible for CommTrade onboarding: Algeria, Angola, Bolivia, Bosnia and Herzegovina, Bulgaria, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Haiti, Iraq, Kenya, Kuwait, Lao PDR, Lebanon, Monaco, Namibia, Nepal, Papua New Guinea, South Sudan, Syria, Venezuela, Vietnam, Virgin Islands (UK), and Yemen. These align with FATF Jurisdictions under Increased Monitoring and equivalent risk frameworks.

Minimum Deposit

The minimum initial deposit is 1,000 USDT-equivalent per vault. Deposits below this amount are rejected by the vault contract. The current minimum is shown at the point of deposit in the app.

Know Your Business (KYB)

SukukFi operates two separate KYB processes for entities in the commercial structure:

1. Telecom carrier onboarding: Carriers seeking access to the CommTrade routing platform undergo SukukFi’s internal KYB review before admission. This covers business verification, AML screening, and integration requirements. Carriers domiciled in Tier 1 or Tier 2 restricted jurisdictions (see Jurisdiction Exclusions above) are ineligible for onboarding.
2. Obligee onboarding (Fuze Finance): The obligee (the entity directed to pay invoice proceeds into the settlement IBAN) undergoes KYB with Fuze Finance as part of the IBAN setup. Fuze Finance is a regulated financial institution. This KYB is a Fuze Finance requirement, separate from SukukFi’s internal process.

On-chain depositors (LPs) do not currently undergo KYC. The ERC-7540 async vault architecture supports KYB/KYC gating at fulfilment if regulatory requirements change, without modifying the core deposit flow.

Regulatory Classification

SukukFi Labs Inc (Panama) does not hold a financial services licence and does not seek regulatory authorisation for the dApp. Vault participation tokens (e.g. duPRT) are structured as participation interests in a contractual arrangement, not as securities, units in a collective investment scheme, or deposit-taking products.

Returns derive from a specific identified commercial arrangement (receivable invoice payments from a named obligor), not pooled investment discretion. Vault deployment conditions are encoded in smart contracts before capital is accepted. This is not a legal opinion and may not apply in your jurisdiction. Each user bears responsibility for compliance with applicable laws. See Who Can Invest for further guidance.

Sharia Principles

SukukFi structures vaults on Islamic finance principles (Mudarabah and Murabaha). No independent Sharia supervisory board has certified any SukukFi vault. See How SukukFi Aligns for detail on the structural approach and certification status.

Security Audits

SukukFi publishes smart contract audit reports in our public security repository:

https://github.com/sukukfi/security-audits ↗

Reviewers needing architectural context should read Security Considerations and Integration Notes for Auditors.

MCP Server

SukukFi runs a public Model Context Protocol server, so AI assistants can query live protocol data and this documentation directly rather than working from a stale training snapshot.

Connect

In Claude Code:

claude mcp add --transport http sukukfi https://mcp.sukuk.fi/mcp --scope user

Any MCP-compatible client works. The endpoint is https://mcp.sukuk.fi/mcp, streamable HTTP transport, no API key and no account required.

What it exposes

Once connected you can ask things like “what is the current capital held in the SukukFi vaults?”, “how does SukukFi assess obligor credit risk?” or “what are the contract addresses on Berachain?” and get answers grounded in live data.

Scope and limits

Public data only. The server reads the same on-chain snapshot that powers the site and the same documentation you are reading now. Confidential investor materials are not reachable through it.

Read-only. There are no tools that move funds, sign transactions or change state. It cannot deposit, redeem or approve anything.

Not advice. Yields reported are illustrative targets, not guarantees, and figures are a point-in-time snapshot. Nothing returned by the server is investment advice.

A note on the TVL figure

get_vault_stats reports each vault’s raw asset balance, not totalAssets(). Per the vault source, totalAssets() deliberately excludes pending deposits, claimable redemptions, cancellations and capital already invested, so reading it as a TVL figure undercounts the real position, sometimes to zero while deposits are sitting in the vault. See Smart Contracts for the full explanation.

FAQs

General Questions Business Questions Investment Questions Technical Questions Invite Code Questions

General Questions

What is SukukFi?

SukukFi is a credit marketplace. Telecom technology companies borrow working capital to fund supplier invoices. DeFi depositors supply that capital and earn a share of the profit when buyers settle. Every instrument is secured against the borrower’s live invoice flow, not promises or token emissions.

How does SukukFi work?

A telecom technology company sells voice minutes, SMS, or data to a creditworthy buyer, such as a Tier-1 operator, hyperscaler, or government department, on 30–90 day payment terms. SukukFi advances stablecoins to pay the supplier upfront. When the buyer settles, the margin between advance and collection is distributed to depositors as profit share.

What is a SukukFi Bond?

When you deposit stablecoins into a SukukFi pool, you receive a bond token representing your share of that pool (e.g. duPRT for the PrimeTel vault). The token earns profit distributions as deals settle. It is also composable: you can use it as collateral in DeFi without exiting your position. A Kodiak market is planned but not yet live.

What makes SukukFi different from other DeFi protocols?

• Yield comes from invoice settlements, not token inflation or debt interest.
• Smart contracts sit inside the operational systems telecom companies already use; they control fund flows through each deal chain, not just custody collateral.
• Bond tokens are composable: tradeable on secondary markets and usable as DeFi collateral.
• Targets DAOs, crypto funds, and qualified investors who want yield uncorrelated to crypto prices.

Business Questions

Who can raise debt through SukukFi?

Telecom technology companies trading voice minutes, SMS, data, IoT, and roaming contracts with creditworthy institutional buyers. SukukFi also works with:

• Payments companies and remittance operators
• Energy traders buying wholesale electricity or gas contracts
• Game publishers working with developer networks and marketplaces
• Digital media operators in programmatic advertising and social media
• Exporters of metals, agricultural commodities, electronics, machinery, or automotives
• Fintechs and financial institutions needing working capital against confirmed receivables

If your business generates invoices against creditworthy buyers and needs working capital, get in touch.

Investment Questions

Who can invest in SukukFi?

• Individual DeFi investors seeking stable, non-correlated returns
• DAOs and crypto-native funds
• Accredited investors and family offices
• Institutional investors looking for real-world yield

You need a Berachain-compatible wallet and stablecoins on Berachain to deposit. The minimum initial deposit is 1,000 USDT-equivalent per vault. Users located in or nationals of FATF-blacklisted jurisdictions (North Korea, Iran, Myanmar) cannot access the platform. See Who Can Invest and Access & Compliance for full eligibility details.

What is the expected return?

We target 10–20% annualised profit share for underwriting supplier credit and extended buyer payment terms. Yield compounds when you leave capital deployed. Once a duPRT pool exists on Kodiak you will be able to provide liquidity with your bond tokens and earn AMM fees on top of the base profit share. No pool exists today.

How do I withdraw?

Submit a redemption request through the app. Vaults use the ERC-7540 async standard: if stablecoins are available, withdrawal completes after the fulfillment window. If capital is deployed in active deals, your request queues until liquidity returns. A Kodiak secondary market for bond tokens is planned but not yet live; no pool exists today, so redemption is currently the only exit. See How to Redeem & Withdraw for the full flow.

What are SukukFi’s fees?

Depositors pay no management or withdrawal fees. A performance fee of up to 20% may apply to profit distributions; SukukFi can waive this for specific pools or periods. The fee in effect for each pool is shown at deposit. Settlement and telecom transaction fees apply to borrowing businesses, not depositors. See the Platform Fees page for the full schedule.

Technical Questions

Which stablecoins can I deposit?

SukukFi pools run on Berachain and accept USDT0, USDC.e, and HONEY. If your stablecoins are on another chain, Stargate Finance can bridge them to Berachain before you deposit.

What token do I receive when I deposit?

duPRT, the bond token for the PrimeTel vault, represents your share of that pool. It earns profit distributions as deals settle and is composable: usable as DeFi collateral, with a Kodiak market planned but not yet live. See the Glossary.

Why is my deposit pending?

Deposits use the async ERC-7540 standard. After you submit a request, funds stay pending until the Investment Manager fulfills the batch, at which point you claim duPRT. See How to Deposit for the full flow.

How is yield generated and distributed?

SukukFi advances stablecoins to fund supplier invoices, then collects payment when buyers settle. The margin is your yield. On settlement, a regulated payment processor receives the obligor’s fiat wire, converts it to stablecoin and credits the carrier’s own wallet. There is no contractual settlement window. The protocol then reclaims the owed amount from that wallet on-chain, outside the processor’s rail, and delivers it to the vault’s settlement contract. The vault contract then distributes principal plus profit share to depositors per its smart contract rules. LP capital is held on-chain throughout and is not custodied by the payment processor.

How does SukukFi apply Islamic finance principles?

SukukFi structures vault arrangements on Islamic finance principles. Each deal follows either Mudarabah (the depositor provides capital, the business runs the venture, and profit splits at a pre-agreed ratio) or Murabaha (SukukFi buys an asset and resells it at a fixed markup agreed before the transaction). No interest accrual and no speculative derivative exposure. No independent Sharia supervisory board has certified any SukukFi vault; the platform applies these structures as a design principle, not a certified or regulated product. The protocol is open to all investors regardless of faith.

trUST Questions

What is trUST?

trUST is a permissioned settlement token built for CommTrade. One trUST equals one US dollar, backed 1:1 by stablecoins in audited Berachain vaults. Telecom operators use it to settle B2B invoices between each other on-chain, instant and auditable, without a correspondent bank. It accrues no interest and carries no yield.

How do I get trUST?

Complete KYB onboarding through CommTrade. Once approved, deposit USDC.e, USDT0, or HONEY into the trUST vault. The deposit queues as an async request that the SukukFi operator reviews and approves, at which point trUST is issued 1:1 to your wallet.

How does trUST differ from USDT or USDC?

USDT and USDC are general-purpose stablecoins anyone can hold and transfer. trUST is permissioned: only KYB-verified CommTrade participants can mint it, and the SukukFi operator reviews every redemption before it settles. Gating both directions closes the arbitrage routes that open when anyone can mint and redeem freely. To redeem, a holder submits a request, the operator approves it, and the holder burns trUST 1:1 for the underlying stablecoin.

Does trUST earn yield?

No. trUST always equals $1.00. Yield from SukukFi’s invoice financing activity accrues to LP depositors who hold bond tokens like duPRT, not to trUST holders.

Can I redeem trUST for stablecoins?

Yes. Submit a redemption request through the vault. The SukukFi operator approves it, then you burn trUST and receive the underlying stablecoin 1:1. There is no fee. Redemption requires operator approval, the same as minting.

Why is trUST minting permissioned?

Open minting would let anyone buy the underlying stablecoin cheap, mint trUST at par, and redeem for profit when a price gap appears. trUST gates both directions: the operator reviews every mint and every redemption, so neither side offers an arbitrage route. Restricting access to verified CommTrade operators also keeps circulation tied to real settlement. See trUST Settlement Dollar for the full design rationale.

Invite Code Questions

For the full mechanics of the invite code system (how codes are registered, how commission is calculated, and how the CommissionRegistry contract works), see the Invite Code page.

What is the Invite Code?

Any Berachain wallet can register a unique invite code. Share it with a capital provider. When they deposit using your link and keep capital deployed for 30 days, you start earning a monthly commission in trUST. No approval process, no intermediary.

How much do I earn as an introducer?

5% of the protocol-wide fee pool each month, weighted by how much of the eligible deployed capital you introduced. If you introduced 10% of all qualifying capital, you receive 10% of the 5% pool, paid in trUST to your wallet. Commission stops automatically when a referred LP exits. No clawback.

How do I convert my trUST commission to a stablecoin?

Commission is paid in trUST, SukukFi’s settlement token, backed 1:1 by stablecoins. To convert it, submit a redemption request through the app. The operator approves it, then releases the underlying stablecoin, the same redemption that applies to all trUST. This review is one of the program’s controls, with the 30-day deployment minimum and the automatic stop when a referred LP exits. Together they keep commissions tied to capital that stays, and route payouts through the operator rather than an open on-chain loop.

Why 30 days before commission starts?

30 days confirms real deployment without penalising introducers with a long wait. It rules out flash deposits. Capital in ERC-7540 async vaults is naturally sticky: 15-day invoice settlement cycles make early withdrawal uncommon. Commission accrues from month two onward for as long as the LP stays deployed.

How does the referral link work?

Your invite code derives from your wallet address on-chain; no server generates it, no database stores it. Your referral link is https://app.sukuk.fi/?ref=YOUR_CODE. When an LP clicks it and deposits, the app calls linkLP() on-chain. That link is permanent and on-chain verifiable.

Operational questions

Can I have multiple invite codes?

No. One address, one code. Register a second wallet if you need a separate code.

Can an LP change their referral link after depositing?

No. The link sets on the first deposit and cannot be changed. This prevents switching referrers after capital is already deployed.

What happens if my referred LP withdraws and re-deposits?

Withdrawal ends the deployment record and removes the LP from pool weight calculations. Re-depositing lets the operator call recordDeployment() again, restarting the 30-day clock. The original introducer link persists across the withdrawal and re-deposit.

Is there a minimum deposit size to qualify?

None at the CommissionRegistry level. Any LP with a recorded deployment contributes to pool weight, regardless of deposit size.

When exactly does the 30-day clock start?

When the operator calls recordDeployment(lpAddress), not at deposit time. A short lag exists between an LP’s ERC-7540 async deposit completing and the operator confirming deployment on-chain.

How do I know my referred LPs have been recorded?

Your introducer dashboard shows a countdown per referred LP. You can also call daysUntilEligible(lpAddress) on the contract directly. type(uint256).max means no deployment has been recorded yet.

Can I use my invite code to supplement my own yield?

Yes, with two wallets. Register an invite code on a second wallet, then deposit from your primary wallet using that second wallet’s referral link. Your primary wallet earns LP yield on its deployed capital; your second wallet earns commission on that same capital from the 5% introducer pool. That is additive yield, not a redirect of it. Single-wallet self-referral does not work the same way: commission on your own deposit from the same address is yield you were already receiving as an LP.

Is the code registered to my address or my ENS name?

Your raw EVM address. ENS names resolve to that address, and the contract uses the resolved value.

Contact & Support

Get in Touch

CEO: [email protected]

Business Development: [email protected]

Technical Support: [email protected]

Links

Website: https://sukuk.fi

App: https://app.sukuk.fi

Documentation: https://docs.sukuk.fi

Twitter: https://x.com/sukukfi

LinkedIn: https://www.linkedin.com/company/sukukfi

Terms of Use

Effective date: 1 July 2026

Operator

SukukFi Labs Inc, incorporated in the Republic of Panama (company number 155754578), operates the SukukFi decentralised application at app.sukuk.fi and the documentation at docs.sukuk.fi (together, the “Platform”). These Terms of Use govern your access to and use of the Platform.

By connecting a wallet, depositing assets, or otherwise using the Platform, you enter a binding agreement with SukukFi Labs Inc on the terms set out here. If you do not agree, do not use the Platform.

1. Participation Agreement

When you deposit into a vault, you enter into a Participation Agreement with SukukFi Labs Inc. This grants you a proportional beneficial interest in SukukFi Labs’ rights under the relevant financing arrangement, drawn from SukukFi Ltd’s assignment of receivables from the named obligor. Your proportional interest equals your share of the vault’s total deployed capital.

Vault participation tokens (e.g. duPRT) represent your beneficial interest on-chain. The tokens transfer freely on Berachain without restriction. Transferring a token does not automatically novate the off-chain rights under the Participation Agreement to the recipient; the on-chain token is the primary instrument of economic entitlement.

2. Eligibility

You must:

• Be at least 18 years of age and have the legal capacity to enter contracts in your jurisdiction.
• Not be located in, or a national of, a jurisdiction excluded under SukukFi’s two-tier jurisdiction policy:
  • Tier 1 (FATF Blacklist, platform-wide): North Korea, Iran, and Myanmar. See fatf-gafi.org for the current list.
  • Tier 2 (CommTrade telecom onboarding, extended restricted jurisdictions): Algeria, Angola, Bolivia, Bosnia and Herzegovina, Bulgaria, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Haiti, Iraq, Kenya, Kuwait, Lao PDR, Lebanon, Monaco, Namibia, Nepal, Papua New Guinea, South Sudan, Syria, Venezuela, Vietnam, Virgin Islands (UK), and Yemen. These align with FATF Jurisdictions under Increased Monitoring.Use of the Platform from any excluded jurisdiction is a material breach of these Terms.
• Independently determine whether use of the Platform is lawful in your own jurisdiction. SukukFi makes no representation that the Platform is lawful in any particular jurisdiction.

3. Minimum Deposit

The minimum initial deposit per vault is 1,000 USDT-equivalent (or the equivalent in the supported stablecoin for that vault). Deposits below this threshold are rejected by the vault contract. The minimum is displayed at the point of deposit and may be updated.

4. Token Classification

Vault participation tokens, including duPRT, are structured as participation interests in a contractual arrangement. They do not constitute securities, units in a collective investment scheme, deposits, or regulated financial products in any jurisdiction. This characterisation is not a legal opinion and may not apply in your jurisdiction. Seek independent legal advice before investing.

5. Islamic Finance Principles

SukukFi structures vault arrangements on Islamic finance principles, including Mudarabah (profit-sharing) and Murabaha (cost-plus markup). Returns derive from identified commercial arrangements, not interest-bearing debt.

Certification status: No independent Sharia supervisory board has certified any SukukFi vault. SukukFi applies these structures as a design principle, not as a certified or regulated Sharia-compliant product, and does not represent that any vault meets any religious or regulatory Sharia standard. Investors seeking certified compliance should obtain an independent Sharia opinion.

6. Fees

SukukFi charges no management fee or withdrawal fee to depositors. A performance fee of up to 20% may apply to profit distributions from specific vaults; the applicable fee is disclosed before deposit. SukukFi may waive the performance fee in whole or in part for any vault or period at its discretion. Settlement and telecom transaction fees apply to borrowing businesses, not depositors.

7. Risks

Depositing into vaults involves significant financial risk, including but not limited to: smart contract vulnerabilities; bridge and cross-chain risk; obligor payment default; payment processor operational risk (including settlement delay, and discretionary holds or freezes with no contractual maximum duration; see Risk Considerations for full disclosure); liquidity risk during redemption periods; and regulatory or legal risk. Past performance is not indicative of future results. You may lose some or all of your deposited capital. See Investor Protection for a full risk summary.

8. No Investment Advice

Nothing on the Platform constitutes investment, legal, financial, tax, or regulatory advice. You are solely responsible for investment decisions and must conduct your own due diligence.

9. Intellectual Property

SukukFi Holdings Inc owns the SukukFi brand, trademarks, and Platform software. SukukFi grants you a non-exclusive, non-transferable licence to use the Platform for its intended purpose. Do not reverse-engineer, copy, or distribute Platform software.

10. Limitation of Liability

To the maximum extent permitted by applicable law, SukukFi Labs Inc’s total aggregate liability for any claim arising from or related to these Terms or the Platform is limited to the lesser of USD 1,000 or the fees you paid to SukukFi Labs Inc in the 12 months preceding the claim. SukukFi Labs Inc is not liable for any indirect, consequential, incidental, punitive, or exemplary damages.

11. Governing Law and Dispute Resolution

These Terms are governed by the laws of the Republic of Panama. Any dispute arising from or relating to these Terms that cannot be resolved informally shall be submitted to binding arbitration in Panama City, Panama, conducted in English under the rules of the Centro de Conciliación y Arbitraje de Panamá.

12. Changes to These Terms

SukukFi Labs Inc may update these Terms at any time by posting the revised version at docs.sukuk.fi/terms-of-use. Continued use of the Platform after the effective date of a revision constitutes acceptance of the revised Terms.

13. Contact

Legal queries: [email protected]
Privacy queries: [email protected]

Privacy Policy

Effective date: 1 July 2026

Controller

SukukFi Labs Inc, incorporated in the Republic of Panama (company number 155754578), is the data controller for information collected through the Platform at app.sukuk.fi and docs.sukuk.fi.

1. Data We Collect

Wallet address. When you connect a wallet, your public address is associated with your session and on-chain activity. A wallet address is a pseudonymous identifier. It does not directly identify you by name but may become personal data if linked to your identity through other means.

IP address. Your IP address is collected at the infrastructure layer for security, fraud prevention, and jurisdictional geo-blocking (access restriction for FATF-blacklisted countries). IP addresses are not stored in application databases but may be retained in server and network access logs.

Usage analytics. The Platform uses Plausible Analytics, a privacy-respecting analytics service. Plausible does not use cookies, does not track users across sessions or websites, and collects no personal data such as name, email address, or device identifiers. Only aggregate page-view and referral data is collected.

On-chain transaction data. Transactions you submit are recorded on Berachain and are publicly visible on the blockchain. SukukFi does not control and cannot modify or delete on-chain data.

2. How We Use Your Data

We use the above data to: operate and secure the Platform; enforce eligibility requirements and geo-blocking; detect and prevent fraud and abuse; improve the Platform; and comply with applicable law.

3. Third Parties

Fuze Finance. Fuze Finance is a regulated financial institution providing the fiat settlement layer. If you are an obligee (an entity directed to pay invoice proceeds), your Know Your Business (KYB) information is collected and stored by Fuze Finance under their own privacy policy. SukukFi Labs Inc receives KYB status confirmation only and does not store KYB documents.

Plausible Analytics. Privacy-first, cookieless analytics. Data is processed on Plausible’s EU-based servers. See plausible.io/privacy for their policy. No personal data is shared with Plausible.

Cloudflare. Infrastructure provider used for content delivery, DDoS mitigation, and geo-blocking. Cloudflare processes IP addresses at the network layer. See cloudflare.com/privacypolicy.

On-chain data. Transactions recorded on Berachain are public, immutable, and outside SukukFi’s control.

4. Data Retention

5. No Selling of Data

SukukFi Labs Inc does not sell, rent, or trade personal data to third parties for marketing purposes.

6. Your Rights

Depending on your jurisdiction, you may have rights to access, correct, restrict processing of, or request deletion of personal data held about you. To exercise any of these rights, contact [email protected].

Note: wallet addresses and on-chain transaction data are technically impossible for us to erase (they are permanently recorded on a public blockchain). Off-chain records will be addressed to the extent technically and legally possible.

7. Cookies

The Platform does not use cookies for tracking or analytics. Plausible Analytics is cookieless by design. Infrastructure providers (Cloudflare) may set technical cookies for security and load-balancing purposes; these are strictly necessary and cannot be opted out of.

8. Changes to This Policy

We may update this Privacy Policy by posting the revised version at docs.sukuk.fi/privacy-policy. Material changes will be communicated through the Platform. Continued use after the effective date of a revision constitutes acceptance.

9. Contact

[email protected]