Arabic (ضمان الملكية) for ownership risk; it is a central and fundamental concept in Islamic finance (and broadly fiqh al-muamalat) where risk taking (daman) legitimizes entitlement to profits and gains (ribh) from the assets/ property owned (mulkiyyah).

The concept of daman is based on the doctrine or maxim”al-ghunm bil-ghurm” under which the legitimization of earning profit (and broadly any economic benefits) is subject to the condition of risk-sharing (or risk-taking) and engaging in a business endeavor or enterprise which contributes to the broader economy. This maxim provides the rationale and the principle of profit and loss sharing in sharika contracts and other types of Islamic finance transactions in which risk and reward (control) are in the hands of an owner of assets or businesses.

Daman al-mulkiyyah is also based on another shari’ah maxim- al-kharaj bil daman, that is, daman is an essential element for any benefits associated with, and attained from, ownership.