To be ready to take any risk concerning one’s job and effort is one of the key principles in Islamic economy. Therefore, there is no profit without any risk. This is the soul of the principles – when there is profit, there is risk – in running business. Musyarakah contract is a kind of contract used by Bank Syariah in financing based on the principle above. The form of financing is a cooperation between Bank Syariah and customer in order to do business based on trust. Both Bank Syariah and customer give contribution in the form of fund and work in the business and each party will share both the profit and the loss. Because of the characteristics of the musyarakah contract, there is no guarantee in musyarakah financing contract. However, as a bank Bank Syariah must always adhere to the precautionary principles. One of the elements of the precautionary principles in financing is the existence of guarantee as stated in Article 23 Islamic Banking Act Number 21 of 2008. Based on the previous matter, collateral position in musyarakah financing contract on Bank Syariah will be discussed.