Loans

Borrow USDC using JLP as collateral while maintaining JLP yield exposure.

This page covers JLP Loans: how to borrow USDC against your JLP, the LTV thresholds, how the borrow rate works, and how liquidation is handled.

What is JLP Loans?

JLP Loans allows users to deposit JLP tokens as collateral to borrow USDC. The position continues to earn JLP yield while the loan is active, allowing users to access liquidity without exiting their JLP position.

The protocol uses an overcollateralized lending model with dynamic interest rates based on utilization.

The Loans page is at jup.ag/perps/jlp-loans. From Jupiter Perps, open it with the ⋮ button (More Perps pages) at the top right of the market header, then Loans.

The Loans page shows live metrics at the top:

Metric	Description
Available Liq.	USDC still available to borrow under the borrow cap (see Key Parameters). New loans are limited by this liquidity.
Utilization	Share of the pool’s USDC that is in use: locked for Perps trades or borrowed through JLP Loans. Drives the borrow APR.
Max LTV	Maximum loan-to-value ratio when opening a position.
Liq. LTV	LTV at which the position becomes eligible for liquidation.
Liq. Penalty	Fee applied to liquidated collateral.
Borrow APR	Current annualised borrowing rate, adjusted based on utilization.

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Key Parameters

Parameter	Value
Collateral	JLP
Borrowable asset	USDC
Maximum LTV	90%
Liquidation LTV	95%
Liquidation fee	2% of the debt repaid by a liquidation
Borrow cap	Loans can use at most 80% of the pool’s USDC

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Loan-to-Value (LTV)

The Loan-to-Value (LTV) ratio represents the ratio between your outstanding debt and the USD value of your JLP collateral.

LTV =
  Outstanding Debt (USD)
  / JLP Collateral Value (USD)

LTV Thresholds

Threshold	Value	Meaning
Maximum LTV	90%	Maximum you can borrow against deposited collateral
Liquidation LTV	95%	LTV at which the position becomes eligible for liquidation

Example

With $10,000 worth of JLP deposited:

Action	Amount	LTV
Maximum initial borrow	$9,000	90%
Liquidation threshold	$9,500 debt	95%
Example lower borrow	$6,500	65%

The lower the LTV, the bigger the buffer: at 65% LTV, the JLP price must fall about 32% before the position reaches the 95% liquidation LTV, and interest accrual narrows that buffer over time.

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Position Management

Each user can hold a single lending position. The Loans interface provides two modes to interact with that position:

Deposit/Borrow

Used to open or grow a position. You deposit JLP as collateral and borrow USDC against it. On the JLP field, HALF / MAX fill in half or all of your JLP balance. On the USDC field, Available shows the most you can borrow against your collateral, and HALF / MAX fill in half or all of it.

Repay/Withdraw

Used to reduce or close a position. You repay USDC to lower your debt, and withdraw JLP to reduce your collateral. HALF / MAX shortcuts work on both fields.

The JLP field shows Available: the most JLP you can withdraw while your position stays within its borrowing limits. A larger amount cannot be submitted: the button shows Withdraw amount exceeds maximum allowed. To withdraw more, also enter a USDC amount to repay. The repayment and the withdrawal go in the same transaction.

The “My Position” panel displays the current state of your position:

Field	Description
My Collateral	JLP deposited as collateral
My Debt	Outstanding debt (principal + accrued interest) in USDC
Liq. Price (JLP)	Estimated JLP price at which the position will be liquidated
LTV	Current loan-to-value ratio

Below the form, a summary previews the amounts you entered: Collateral, Debt, LTV and Liq. Price (JLP) show the value after the transaction, next to the current value if you already have a position, and Curr. Price (JLP) shows the current JLP virtual price for reference against the liquidation price.

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Borrow Rate

The borrow APR is dynamic and adjusts based on pool utilization. Higher utilization means a higher borrow rate.

Interest compounds: it accrues continuously at the current rate and is added to your debt, so the debt grows slightly faster than the APR alone suggests.

Utilization Formula

Utilization =
  (Locked for Trading
   + Total Borrowed)
  / Total Pool Size

Show Rate Calculation (code)

// When utilization ≤ target utilization (linear curve)
Rate Increase = (Target Rate - Min Rate) × Utilization / Target Utilization
Yearly Rate   = (Min Rate + Rate Increase) × 10^9 / 10,000

// When utilization > target utilization (jump rate curve)
Rate Diff         = Max Rate - Target Rate
Util Above Target = Utilization - Target Utilization
Remaining Cap     = 10^9 - Target Utilization
Extra Rate        = (Rate Diff × Util Above Target) / Remaining Cap
Yearly Rate       = (Target Rate + Extra Rate) × 10^9 / 10,000

// Convert to hourly and APR
Hourly Rate = Yearly Rate / (24 × 365)
Borrow APR  = (Hourly Rate / 10^9) × 24 × 365 × 100

The specific rate parameters (jumpRateState, borrowsFundingRateState) are defined per custody account.

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Liquidation

Liquidation is triggered when a position’s LTV reaches the Liquidation LTV of 95%. Only whitelisted keepers can execute liquidations. The size of the outstanding debt decides whether the liquidation is partial or full.

Partial Liquidation

If the debt is more than $100, the position is partially liquidated:

• Repays the part of the debt that would bring the LTV back to 90%, the maximum LTV. When the liquidation happens right at 95%, that is a little over half of the debt
• Burns the JLP collateral needed for that repayment, plus the 2% liquidation fee
• Leaves the position at about 92% LTV, because the fee also comes out of the collateral; higher if the LTV had moved past 95% before the liquidation
• Allows the user to retain the remaining collateral and position

Full Liquidation

If the debt is $100 or less, the position is fully liquidated: the entire outstanding debt is repaid and the necessary JLP collateral is burned.

Liquidation Fee

A 2% fee is charged on the debt repaid by the liquidation, taken from your JLP collateral on top of the repayment.

If your position is fully liquidated, you may lose a significant portion of your deposited JLP collateral. Monitor your LTV regularly, especially during periods of JLP price volatility.

You can avoid liquidation at any time by depositing additional JLP collateral or repaying part or all of your outstanding debt.