What Are Perpetual Futures?
A perpetual future ("perp") is a derivative that tracks an asset's price without an expiry date. Traders post collateral (margin) and borrow to open positions larger than their capital — that's leverage. Perps use funding rates to keep their price aligned with spot.
How Jupiter Perpetuals Work
On Jupiter, traders open longs or shorts against the JLP pool. When you profit, the pool pays you; when you lose, your collateral flows to the pool. You pay borrow/funding fees for keeping leverage open. This pool-based design gives deep, predictable liquidity for SOL, ETH, and BTC.
What Is JLP (Jupiter Liquidity Provider)?
JLP is the token representing a share of the perps liquidity pool — a basket of SOL, ETH, BTC, USDC, and USDT. JLP holders earn a majority share of the platform's perps trading fees, making it a popular yield strategy. Its price reflects the basket plus accrued fees.
Risks of Trading Perps
- Liquidation: if the market moves against you past your maintenance margin, your position is closed and collateral lost.
- Funding/borrow fees: erode returns on positions held over time.
- Volatility: Solana assets can move fast; leverage amplifies the effect.
Summary
Jupiter Perpetuals brings deep, pool-backed leverage trading to Solana for SOL, ETH, and BTC, with JLP providers earning fees on the other side. It's powerful but high-risk: understand funding, liquidation, and position sizing before using leverage, and never risk more than you can afford to lose.
Frequently Asked Questions
What leverage does Jupiter Perps offer?
Jupiter Perpetuals has offered up to 100x leverage on supported assets like SOL, ETH, and BTC. Higher leverage means higher liquidation risk.
How do JLP holders earn yield?
JLP holders receive a large share of the fees generated by the perpetuals exchange, in addition to exposure to the underlying basket of assets.
Can I lose more than my margin?
Positions are liquidated to protect the pool, so you generally cannot lose more than your posted collateral, but you can lose all of it.