---
title: "What is Daman (liability for loss)? | IslamicOpenFinance™"
description: "Possession or obligation that makes the holder answerable for an asset's loss, whatever the cause."
url: https://islamicopenfinance.com/glossary/daman/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Shariah fundamentals](https://islamicopenfinance.com/glossary/#fundamentals)

Shariah fundamentals

# Daman (liability for loss)

Possession or obligation that makes the holder answerable for an asset's loss, whatever the cause.

Daman is liability for property: the person who holds an asset on a liability basis must return it, or its value, if it is lost or destroyed, whatever the cause. AAOIFI's standard on possession defines possession creating liability as acquiring a thing in a way that obliges the holder to return a fungible item or pay the value of a non-fungible one on its loss. The same word is used more broadly for guarantee and compensation, which is why reading the context matters. In product design, daman and amanah together decide which party carries the risk of an asset at each step.

## Sources

- [AAOIFI Shari'ah Standards, English edition (full text, PDF): Shari'ah Standard No. 18, Possession (Qabd), Appendix C, possession creating a liability](https://aaoifi.com/wp-content/uploads/2017/12/Shariaa-Standards-ENG.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Amanah (trust)** Holding someone else's property as a trust: the holder is not liable for its loss unless it was caused by misconduct or negligence.](https://islamicopenfinance.com/glossary/amanah/) [**Kafalah** A guarantee: a guarantor joins the guaranteed party in assuming a specified liability.](https://islamicopenfinance.com/glossary/kafalah/) [**Qard** A loan of money to be repaid in an equivalent amount; any benefit stipulated for the lender is riba.](https://islamicopenfinance.com/glossary/qard/) [**Dhimmah (legal capacity for obligations)** The legal capacity in which rights and obligations are held, so that a debt can sit in a person's liability rather than in a specific asset.](https://islamicopenfinance.com/glossary/dhimmah/)

**Shariah fundamentals**

1. [Riba](https://islamicopenfinance.com/glossary/riba/)
2. [Gharar](https://islamicopenfinance.com/glossary/gharar/)
3. [Maysir](https://islamicopenfinance.com/glossary/maysir/)
4. [Shariah](https://islamicopenfinance.com/glossary/shariah/)
5. [Fiqh al-muamalat](https://islamicopenfinance.com/glossary/fiqh-al-muamalat/)
6. [Maqasid al-Shariah](https://islamicopenfinance.com/glossary/maqasid-al-shariah/)
7. [Riba al-nasiah](https://islamicopenfinance.com/glossary/riba-al-nasiah/)
8. [Riba al-fadl](https://islamicopenfinance.com/glossary/riba-al-fadl/)

[All 221 terms](https://islamicopenfinance.com/glossary/)