Imported from bencharoenwong/parallax-workflows (plugin/skills/parallax-halal-screen/SKILL.md). Install upstream with npx skills add bencharoenwong/parallax-workflows --skill parallax-halal-screen. Copyright stays with the author.

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 (commonly used screening ratios) — 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 commonly used screening ratios applied to Parallax financial data.

Screening Thresholds

These are the Shariah compliance thresholds applied by this skill. They are commonly used screening ratios, not a claim of conformance to any named published standard. They are applied to data retrieved from get_financials.

Debt and interest-bearing-asset ratios are measured against total assets, not against market capitalization. Published Shariah screening standards differ from one another on the denominator, on the exact cutoffs, and on the set of ratios screened, so a verdict from this skill is not interchangeable with any named index provider's or standards body's screen. The 33% and 5% cutoffs are this skill's own fixed values; they are not maintained to conform to any published standard.

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.

   This screen is a gate — it fails closed per parallax-conventions.md §4.0. If either get_financials call in steps 2-3 errors, returns empty, or returns null/missing values for any input to a threshold (total debt, total assets, cash, interest-bearing securities, interest income, non-permissible revenue, total revenue) after the §4 retry, the name's verdict is UNVERIFIED, not compliant and not non-compliant. Record which field or call was unavailable. An UNVERIFIED name is excluded from the Compliant Subset and from any portfolio aggregate computed over compliant holdings, and it is never dropped silently. Never estimate a missing ratio input from sector, peers, a comparable company, or narrative text — an unavailable input stays unavailable. A partial result is reportable: if step 2 succeeds and step 3 fails, render the two computed ratios and mark the third UNVERIFIED; the overall verdict is still UNVERIFIED because a threshold went unchecked.

   The step-1 business-activity FAIL is decisive and unaffected: a prohibited-industry name is non-compliant even if steps 2-3 would have been unverifiable, because the qualitative screen already settled it.

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 — or UNVERIFIED with the unavailable field named, per step 3.

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). The step-3 gate rule applies per holding: a holding whose get_financials data is unavailable is UNVERIFIED, and one unverifiable holding never blocks the rest of the screen.
2. Call check_portfolio_redundancy on compliant holdings only. UNVERIFIED holdings are not "compliant" — exclude them here, from the Compliant Subset, and from every aggregate over compliant holdings. Weights renormalise over verified-compliant names only, and the report states that they were renormalised.
3. Sanity-check the check_portfolio_redundancy 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.
4. For non-compliant holdings, call build_stock_universe with "[sector]" to find alternatives, then screen those alternatives through the same compliance check. Do not source alternatives for UNVERIFIED holdings — an unscreened name has not been rejected, so proposing replacements would present a data gap as a compliance finding. Recommend re-running the screen for those names instead.
5. Call get_peer_snapshot on compliant alternatives to score them.

Output Format

• Screening Criteria (commonly used screening ratios 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. State all three counts whenever any name is UNVERIFIED — compliant, non-compliant, and unverified — in plain words (e.g. "2 holdings could not be screened because financial data was unavailable"). A summary reporting only "18 of 20 compliant" while 2 went unscreened is the §4.0 failure this skill exists to prevent, and it is the first line the client reads.
• Compliance Results (table: symbol, status ∈ COMPLIANT / NON-COMPLIANT / UNVERIFIED, reason if non-compliant or unverified). UNVERIFIED is a rendered state, never an omission: give the reason as the field or call that was unavailable (e.g. UNVERIFIED — total revenue unavailable from get_financials(ratios)). Do not collapse the three states into a binary Y/N column, and never leave a screened symbol out of this table.
• Unverified Names (render only if any row is UNVERIFIED): one line per name stating what was missing and that the name is excluded from the Compliant Subset pending a re-screen. Per parallax-conventions.md §4.0 this is a data-integrity warning and is not suppressible under audience=client_safe — a client reading a compliant list must be able to tell "screened and cleared" from "could not be screened."
• Key Ratios (debt/assets %, interest-bearing/assets %, non-permissible revenue %; render each unavailable ratio as UNVERIFIED, not as a blank, a dash, or an estimate)
• Verdict sensitivity: the ratio nearest its 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. Select only among ratios that were actually computed: an UNVERIFIED ratio has no distance to its cutoff, so it can never be the surfaced input, and a name whose overall verdict is UNVERIFIED renders no sensitivity line at all (per §11.2, omitting it is the compliant behavior — never infer a flip number from a missing input).
• 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). Contains verified-compliant names only — UNVERIFIED holdings are excluded per conventions §4.0. If any were excluded, state the count and that weights were renormalised over verified-compliant names, so the subset is never mistaken for a full screen of the portfolio.
• 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 commonly used Shariah screening ratios (debt and interest-bearing-asset thresholds measured against total assets) applied to Parallax financial data, not investment advice or a fatwa. Consult a qualified Shariah advisor for binding rulings.