How is loss determined in a profit-sharing partnership (*Mudarabah*)?

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Loss in *Mudarabah* pertains exclusively to the capital. The working partner bears no share of the loss because loss represents a decrease in the principal capital, which belongs solely to its owner. Therefore, the reduction affects only the capital owner's funds. The partners only share in the resulting increase or profit, similar to leasing land or trees (*Musāqāh* and *Muzāra'ah*), where the owner of the land or trees shares with the worker only in what is produced (crops or fruit).