Jupiter Perps is the perpetual futures product built by Jupiter, letting traders open leveraged long and short positions on SOL, ETH and wBTC directly on Solana. It works differently from an order book exchange: there is no counterparty taking the other side of your trade, no funding rate, and no slippage on entry. Instead you borrow assets from a shared liquidity pool at an oracle price, and you pay an hourly borrow fee for as long as the position stays open.
A Pool Instead of an Order Book
Most perpetual exchanges match longs against shorts and use a funding rate to keep the contract price tethered to spot. Jupiter inverts the model. Traders transact against the Jupiter Liquidity Pool, and the pool takes the other side of every position collectively.
Execution prices come from Pyth oracle feeds rather than from a book, which produces two immediate consequences. Entries and exits fill at the oracle price with zero slippage, regardless of size, so a $500,000 position enters at the same price as a $500 one. And because there is no book to walk, there is no market depth to analyse before sizing a trade. The Pyth network feed is the price, and the pool absorbs the exposure.
This is a meaningfully different instrument from the spot swaps that made Jupiter's name, described in our Jupiter and Raydium comparison. Swaps are atomic and risk-free once settled. Perps carry ongoing cost and liquidation risk.
The JLP Pool on the Other Side of Your Trade
The Jupiter Liquidity Pool holds five assets: SOL, ETH, wBTC, USDC and USDT. Anyone can deposit into it and receive JLP tokens representing a share.
JLP holders earn 75% of all fees the perpetuals venue generates, including opening and closing fees, borrow fees, and swap fees on pool rebalancing. That yield is the reason JLP has attracted substantial capital.
The exposure is not passive, though. JLP holders are structurally short the traders. When traders win, the pool pays out. When traders are liquidated, the pool keeps the collateral. Add the fact that the pool holds volatile assets directly, and a JLP position is a blend of directional market exposure and a fee stream, which behaves nothing like staking JUP for governance rewards. One is a market-making position with drawdown risk; the other is a locked governance stake with a fixed quarterly pool.
Borrow Fees Replace Funding Rates
The cost structure is where Jupiter Perps diverges most sharply from conventional venues.
No funding rate exists. On a standard perpetual, longs pay shorts or shorts pay longs depending on which side is crowded. Jupiter has no opposing side to pay, so this mechanism has nothing to attach to. Traders coming from centralised futures should read our explainer on funding rates to see exactly what is being replaced here.
Borrow fees accrue hourly instead. The formula is utilisation multiplied by the hourly borrow rate multiplied by position size, where utilisation is the share of pool assets currently locked by open positions. Fees compound hourly and are paid back into the JLP pool.
Crowding raises your cost. Because utilisation drives the rate, a heavily long SOL market makes SOL longs progressively more expensive to hold. That is the same pressure a funding rate applies, delivered through a different pipe, and it means holding a crowded position for weeks can quietly erode returns even when the trade is directionally right.
Leverage runs up to 100x on the main markets, with higher tiers on selected pairs. Opening and closing each carry a small percentage fee on position size.
Where the Risks Sit
Liquidation on Jupiter Perps happens against oracle prices, so a fast wick on one venue will not liquidate you if the aggregate oracle price holds. That is a real advantage over thin order books. The trade-off is that you cannot place resting limit orders into a book and wait for a fill in the traditional sense.
Pool solvency is the systemic risk. If traders as a group win heavily, JLP takes the loss, and extreme one-sided moves have historically been the stress test for pool-based perp designs. Jupiter caps open interest per asset to manage this, which means a position you want may be unavailable when volatility spikes and everyone wants the same side.
For JUP holders, the perpetuals business matters because of where the fees go. The 25% of perp revenue that does not go to JLP holders flows into protocol income, half of which buys JUP through the Litterbox Trust, a loop the JUP tokenomics breakdown sets out in full. Perp volume is therefore one of the cleaner leading indicators for the buyback rate that underpins the JUP price outlook.
Jupiter Perps Questions
What leverage does Jupiter Perps offer?
Jupiter Perps supports leverage up to 100x on its core markets, with higher tiers available on selected pairs. Higher leverage tightens your liquidation threshold proportionally, so a 100x position is liquidated by roughly a 1% adverse move before fees.
What is JLP and how does it earn yield?
JLP is the token representing a share of the Jupiter Liquidity Pool, which holds SOL, ETH, wBTC, USDC and USDT. Holders receive 75% of all fees generated by the perpetuals venue, including borrow fees and trading fees. In exchange, JLP absorbs trader profit and loss and carries direct exposure to the volatile assets in the pool.
Does Jupiter Perps charge funding rates?
No. Jupiter Perps uses an hourly borrow fee based on pool utilisation instead of a funding rate. The fee is charged to whoever holds an open position, regardless of direction, and is paid to JLP holders rather than to traders on the opposite side.
How does Jupiter Perps compare to other decentralised perp venues?
Jupiter's oracle-and-pool design prioritises zero-slippage execution over order book depth, which differs from book-based decentralised venues such as Hyperliquid and Solana-native Drift. The trade-off is simpler execution against capped open interest and utilisation-driven costs. Full mechanics are documented in Jupiter's perpetuals docs.
Choosing Between Pool Perps and Order Book Futures
Jupiter Perps solves a specific problem well. If you want size without slippage on a major Solana asset and you are comfortable paying a utilisation-linked holding cost, the design works in your favour. Short-duration directional trades in particular benefit, since borrow fees have little time to compound.
Longer holds and finer execution control point elsewhere. An order book venue gives you resting orders, visible depth, cross-margin across many assets, and conventional funding you can arbitrage. Many active traders use both, running on-chain perps for Solana-native exposure and a centralised book for everything else.
Trading the token behind all of this? JUP spot is live on LeveX for direct exposure, and JUP perpetual futures offer leveraged positions with order book execution. Browse Crypto in a Minute for more on how derivatives products work.