Shari’a permits that a third party, other than the mudarib (in mudaraba) or investment agent (in investment agency, wakala) or partner (in musharaka or any of its variants) can voluntarily offer to cover any investment losses incurred by the party to whom the guarantee is extended, provided that such an action (offering the guarantee) is not linked to, or made contingent on, the original contract (mudaraba contract, investment agency contract, musharaka contract, etc.) in whatever manner.

This type of guarantee constitutes a promise (wa’ad) or undertaking to voluntarily compensate for any loss of capital under the contract entered into with a party other than the guarantee provider (guarantor).