Cryptocurrency - Synthetic Futures - Leveraged Tokens - Halal or Haram?

Assalamu aleikum wa rahmatullahi wa barakatuh, My friend and I are planning to invest in cryptocurrency leveraged tokens, specifically BTC, ETH, and Solana, using a DeFi platform called TLX. You can find more information on their website . However, we are uncertain whether this investment is halal or haram. We have conducted thorough research on the leveraged tokens available on the TLX platform through various sources, including official documentation, ChatGPT, and Islamic finance forums. Our findings suggest that these tokens do not involve riba (compounding interest), unlike those offered by other DeFi platforms such as Toros . Toros creates leverage by borrowing additional assets, resulting in leverage token owners paying interest on the borrowed amount, which is haram. We are avoiding the Toros platform for this reason. On the other hand, TLX leveraged tokens derive their leverage through synthetic futures from the Synthetix platform, rather than through borrowing or lending (as it is the case with Toros). Synthetic futures mimic the behavior of traditional futures without necessitating ownership of the underlying asset. They are constructed using financial instruments like options or swaps to replicate the price movements and payoff structures of conventional futures contracts. Unlike traditional futures that require funding fees to align with the spot market, synthetic futures eliminate this need due to their specific expiration dates and settlement terms. This distinction is crucial, as it addresses any potential concerns about the permissibility of funding fees under Islamic law. Regarding the fee structure of the TLX platform: - Streaming Fee: The 2% streaming fee covers the costs related to maintaining the leveraged token. Since it is not tied to riba, it appears permissible. - Rebalancing Fee: Currently set to zero, this fee may be introduced to cover actual rebalancing costs in the future. As it is designed to cover costs rather than generate profit through interest, it seems permissible. - Redemption Fee: This fee compensates for the service of redeeming the leveraged token, making it a service-based fee rather than interest, and thus permissible. As far as we know, generally, service-based fees are acceptable in Islamic finance if they are transparent and justified by the provided services. Based on our research, the fees associated with TLX leveraged tokens are clearly defined and service-oriented. There is no compounding or standard interest, and no requirement for staking assets, indicating no involvement with interest-based profit generation. In summary, the fee structure appears well-aligned with Shariah law. Fahim and I believe this is pointing in a good direction, though we seek your expert opinion to conclude our findings. **With the provided information, do you consider the leveraged tokens on TLX to be permissible under Islamic principles?** Thank you for your time and guidance.