Sofr
/ˈsɒfər/
Definitions
- (n.) A legal term used in Islamic finance referring to a profit rate benchmark for Islamic banking and finance products, derived from the average rates on certain deposit accounts in Islamic financial institutions.
The contract specified returns based on the SOFR benchmark adhering to Shariah principles.
Forms
- sofr
Related terms
See also
Commentary
SOFR originally refers to the Secured Overnight Financing Rate in conventional finance, but 'Sofr' in Islamic finance contexts is adapted as a profit rate benchmark; usage context is critical.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.