parallax-halal-screen

name	parallax-halal-screen
description	Shariah-compliant stock screening: filter for halal investments, check compliance flags, explain screening criteria, and suggest compliant alternatives via Parallax MCP tools. NOT for general thematic screening (use /parallax-thematic-screen), not for portfolio construction (use /parallax-portfolio-builder).

Halal / Shariah Screen

When not to use

• General thematic screening → use /parallax-thematic-screen
• Portfolio construction → use /parallax-portfolio-builder
• Non-compliance screening → use /parallax-earnings-quality

Gotchas

• JIT-load _parallax/parallax-conventions.md for RIC resolution, parallel execution, and fallback patterns
• explain_methodology does NOT support shariah/halal — valid concepts are value, quality, momentum, defensive, tactical, overall, factor_weighting, scoring
• Shariah thresholds are hardcoded in this skill (AAOIFI/DJIM standards) — derive compliance from get_financials data
• get_financial_analysis (Palepu framework) is async ~2-5 min — warn user before calling
• Financial ratios from get_financials help verify debt/revenue compliance thresholds
• JIT-load _parallax/white-label/integration-pattern.md before the Pre-Render step. Loader call is load_visual_branding() (7-key visual subset; voice structurally excluded — branding["voice"] raises KeyError). Apply §5 (Branding Header) and §7 (About This Report) in Output Format.
• Cost: ~4 tokens single-stock, +5 optional if Palepu is called; ~4-5/holding in portfolio mode. Breakdown in _parallax/token-costs.md.

Screen stocks and portfolios for Shariah compliance using AAOIFI/DJIM screening thresholds applied to Parallax financial data.

AAOIFI / DJIM Screening Thresholds

These are the standard Shariah compliance thresholds used in this skill. They are applied to data retrieved from get_financials.

Ratio	Threshold	Pass condition
Total debt / Total assets	< 33%	Low leverage — no excessive interest-bearing debt
(Cash + interest-bearing securities) / Total assets	< 33%	Limited exposure to interest-bearing instruments
(Interest income + non-permissible revenue) / Total revenue	< 5%	Negligible income from haram activities

Business activity screen (qualitative): The company's primary business must not be in prohibited industries (conventional banking/insurance, alcohol, tobacco, gambling, pork, weapons, adult entertainment). This is assessed from get_company_info sector/industry data.

Purification ratio: If a stock passes all quantitative screens but has non-zero non-permissible income, the purification percentage = (non-permissible income / total income). Shareholders should donate that percentage of dividends received.

Usage

/parallax-halal-screen AAPL.O
/parallax-halal-screen [{"symbol":"AAPL.O","weight":0.25},{"symbol":"JPM.N","weight":0.25},{"symbol":"JNJ.N","weight":0.25},{"symbol":"XOM.N","weight":0.25}]
/parallax-halal-screen AAPL.O audience=client_safe

Two modes: single-stock compliance check, or screening of existing holdings. Building a compliant portfolio from a universe is not a mode of this skill — use /parallax-portfolio-builder with a halal constraint, then screen the result here. Optional audience= argument: client_safe | internal_analyst; precedence follows parallax-conventions.md §13.1.

Workflow

JIT-load _parallax/parallax-conventions.md for RIC resolution, parallel execution, and fallback patterns.

Step 0 — Tool loading

Call ToolSearch with query "+Parallax" to load the deferred MCP tool schemas before the first mcp__claude_ai_Parallax__* call. Without this step, all Parallax tool calls below fail with "tool not found."

For single stock compliance check:

1. Call get_company_info to retrieve sector/industry — check against prohibited industries (banking, alcohol, tobacco, gambling, pork, weapons, adult entertainment). If this screen FAILs, mark the stock non-compliant and skip steps 2-3 (financial calls) for that name — a prohibited business activity is decisive regardless of financial ratios.
2. Call get_financials ONCE with statement "balance_sheet" to retrieve total debt, total assets, cash, and interest-bearing securities. Compute both ratios from the single response: total debt / total assets (FAIL if >= 33%) and (cash + interest-bearing securities) / total assets (FAIL if >= 33%).
3. Call get_financials with statement "ratios" to retrieve interest income and revenue figures. Compute: (interest income + non-permissible revenue) / total revenue. FAIL if >= 5%. If >0% but <5%, compute purification ratio.
4. Optionally call get_financial_analysis for deeper profitability decomposition (warn user: async ~2-5 min).
5. Call get_score_analysis for quality trajectory.
6. Present compliance verdict with all three ratio values and pass/fail per threshold.

For portfolio screening:

1. For each holding, run the single-stock compliance check (steps 1-6 above; the business-activity short-circuit applies here too — prohibited names skip financial calls, saving ~3 tokens per prohibited holding).
2. Call check_portfolio_redundancy on compliant holdings only. Sanity-check the response (apply only when compliant holdings count N≥8 to avoid false-positives on small compliant sets where natural concentration is expected): if compliant holdings have >60% concentration in a single sector but sector_concentration: {} is empty and "well-diversified" is returned, the tool's concentration detection has silently failed — compute concentration client-side from per-holding sectors and flag the tool bug in output. For N<8, skip the sanity-check entirely; small concentrated halal subsets are an expected screening outcome, not a tool bug. Rationale for N=8 cutoff: at N=8 a >60% single-sector share requires ≥5 holdings clustered in one sector, which is unlikely from natural Shariah filtering (which typically excludes ~3 sectors broadly, leaving the residual spread across ≥4–5 sectors); at N≤7 the same share can result from 4 holdings and is consistent with screening outcome, not a tool defect. Tune the cutoff only if production data shows the false-positive rate diverging from this assumption.
3. For non-compliant holdings, call build_stock_universe with "[sector]" to find alternatives, then screen those alternatives through the same compliance check.
4. Call get_peer_snapshot on compliant alternatives to score them.

Output Format

• Screening Criteria (AAOIFI/DJIM thresholds as listed above)
• Plain-Language Summary (under audience=client_safe only): 2-3 sentences stating the screen outcome counts in plain terms for a non-specialist reader; factor names carry the §13.3 gloss if used, no cutoff arithmetic, framed per §12 as informational with no directives.
• Compliance Results (table: symbol, compliant Y/N, reason if non-compliant)
• Key Ratios (debt/assets %, interest-bearing/assets %, non-permissible revenue %)
• Verdict sensitivity: the ratio nearest its AAOIFI/DJIM cutoff (33% debt/assets, 33% interest-bearing/assets, or 5% non-permissible-revenue) and the arithmetic flip condition, per parallax-conventions.md §11 (internal_analyst mode only per conventions §13.2). Applies only to the three quantitative ratios above — never to the qualitative business-activity screen.
• Purification Amount (if applicable — percentage of dividends requiring purification)
• Alternatives (for non-compliant holdings: scored compliant replacements in same sector — informational candidates, not replacement instructions)
• Compliant Subset (if portfolio mode: the screened-compliant holdings and their current weights — an informational screen result per conventions §12, not a rebalancing instruction; for construction use /parallax-portfolio-builder then re-screen)
• Branding Header (only if white_label_active AND client_name != "") — single line at the very top: **<client_name>** Shariah screen. Logo handling per integration-pattern.md §5.
• About This Report (always present): one line stating branding state per integration-pattern.md §7. If a logo was skipped, append Logo on file: <basename> as a second About This Report line.

Pre-Render — Load white-label branding

Load _parallax/white-label/integration-pattern.md §2 and compute white_label_active + client_name per that section. Apply §5 (Branding Header) and §7 (About This Report) when composing the Output Format.

AI-interaction disclosure (required regardless of view state): Render parallax-conventions.md §9.2 immediately above the disclaimer below.

Render the standard disclaimer verbatim from parallax-conventions.md §9.1.

These are analytical outputs based on AAOIFI/DJIM screening thresholds applied to Parallax financial data, not investment advice or a fatwa. Consult a qualified Shariah advisor for binding rulings.