1. Mudarabah is a type of partnership where one partner provides capital to another to invest in a business venture. Profits are shared according to a predetermined ratio, while losses are borne solely by the capital provider. 2. There are two types of Mudarabah - restricted, where the capital provider specifies the business or place of investment, and unrestricted, with broader investment freedom. 3. A Mudarabah can be terminated by either party through notice and distribution of profits/losses occurs according to capital ratios at termination.