What is JLP Delta Neutral?
JLP Delta Neutral (JLP-DN) is a managed vault strategy built on top of JLP. It aims to preserve JLP’s underlying yield while systematically neutralizing its directional exposure to SOL, ETH, and wBTC — and to trader PnL. The result is a position that earns JLP fees without taking meaningful directional market risk. Yield is denominated in USDC. The strategy is powered by Jupiter and operated by Neutral Trade. For full operational and technical details, refer to the Neutral Trade documentation.Key Parameters
| Parameter | Value |
|---|---|
| Strategy type | Market Neutral |
| Base asset | USDC |
| Minimum deposit | 10 USDC |
| Maximum capacity | 50M USDC |
| Management fee | 0% |
| Performance fee | 25% (charged above the High-Water Mark only) |
| Withdrawal fee | 0.3% (redistributed to existing depositors) |
| Vault address | GiNbTRuRqvVGEEQGZKMjmwX84LrsbqfzVVNtWYbcZPCY |
How It Works
The strategy combines three Jupiter products:- JLP — the yield-bearing base asset
- JLP Loans — used to borrow USDC against JLP collateral
- Perpetual short positions — opened offchain to hedge the directional exposure
Step 1 — JLP Acquisition and Looping
- USDC deposits are used to mint JLP
- JLP is deposited as collateral in JLP Loans
- USDC is borrowed against that collateral
- The borrowed USDC is used to acquire more JLP
- This process repeats, targeting a 65% LTV, resulting in approximately 1.9x effective JLP exposure
Step 2 — Delta Neutral Hedging
JLP carries exposure to SOL, ETH, and wBTC price movements, as well as trader PnL. The strategy hedges these exposures by opening perpetual futures short positions on Binance, sized to offset the net delta of the JLP position. Hedging weights adjust dynamically based on JLP composition, collateral value, and market conditions. The target is net-zero delta across SOL, ETH, and wBTC.The hedging infrastructure (Ceffu custody, Binance sub-account, daily PnL settlement) is operated by Neutral Trade. Jupiter does not operate or control this component. For details, refer to the Neutral Trade documentation.
Deposit and Withdrawal Flow
Because the strategy combines onchain and offchain components, deposits and withdrawals are processed in stages rather than instantly.Depositing
Submit deposit request
You deposit USDC into the vault. The amount appears as Pending Deposit until it is deployed.
Funds are deployed (within 24 hours)
Within 24 hours, your funds are deployed into the strategy by Neutral Trade. Your position becomes active and starts earning yield.
Withdrawing
Submit withdrawal request
You submit a withdrawal request for the amount of USDC you want to redeem. The amount appears as Pending Withdrawal.
A 0.3% withdrawal fee is applied at withdrawal. This fee is redistributed to the remaining depositors in the vault.
Position Fields
Your position in the vault is displayed across two panels on the Delta Neutral page:| Field | Description |
|---|---|
| Balance | The current value of your holdings in the vault, after fees |
| Your Earnings | The total profit you have made from this vault, after all fees deducted |
| Pending Deposit | USDC submitted for deposit but not yet deployed (within the 24-hour deployment window) |
| Pending Withdrawal | USDC submitted for withdrawal but not yet returned to your wallet |
| High-Water Mark | The highest post-fee value your position has reached. Performance fees only apply above this level. See below. |
| Fees Paid | The cumulative fees charged on your position to date |
High-Water Mark
The High-Water Mark (HWM) is the highest post-fee value your portfolio has reached in the vault. The 25% performance fee is only charged on gains above this level. This protects you from paying performance fees twice on the same gains if the vault’s value fluctuates. Formula: Example:- You deposit 100 USDC. Your HWM starts at 100 USDC.
- Your balance grows to 110 USDC. A 10% gain is achieved. The performance fee is 25% of the 10 USDC gain = 2.5 USDC. After fees, you hold 107.5 USDC.
- Your new HWM is now 107.5 USDC.
- You won’t pay performance fees again unless your balance grows above 107.5 USDC.
Vault Metrics
The Delta Neutral page also displays performance metrics for the entire vault:| Metric | Description |
|---|---|
| APY | Annualised yield based on recent performance |
| TVL | Total Value Locked in the vault, with progress toward the max capacity |
| ROI | Return on investment of the vault since inception |
| Sharpe Ratio | Risk-adjusted return metric (higher is better) |
| Max Drawdown | Largest observed peak-to-trough decline in vault value |
Yield Sources
Yield is generated from three components:| Source | Description |
|---|---|
| JLP native yield | 75% of Jupiter Perps fees (open/close, price impact, borrow, swap) |
| Leverage amplification | JLP looping increases effective exposure to JLP yield |
| Funding rates | Short hedging positions may earn or pay funding rates depending on market conditions |
Funding rates can amplify yield when they are positive (shorts receive funding), but they can also be a cost when negative. This component is variable and not guaranteed.
Exposures
While directional delta is hedged, the strategy retains the following exposures:- JLP yield (fees from Jupiter Perps trading)
- BTC funding rate
- SOL funding rate
- ETH funding rate
Rewards
Depositors are eligible for 2x NT points from Neutral Trade.Risks
JLP token risk
JLP token risk
The strategy is exposed to JLP mechanics — including trading activity, margining, and token price behavior. JLP’s market price may deviate from its virtual price in fast-moving markets. There is also a rebalancing threshold below which the position is not fully delta-neutral.
Funding rate risk
Funding rate risk
Short hedging positions pay or receive funding rates on Binance. If funding rates turn significantly negative, this becomes a cost that reduces overall yield.
Liquidation risk
Liquidation risk
The JLP looping structure uses JLP Loans at a target LTV of 65%. If JLP price falls significantly, LTV may approach the liquidation threshold. The strategy is designed so that if short hedges rise in value, JLP collateral also rises — helping maintain safe LTV — but this is not guaranteed under all market conditions.
Operational risk
Operational risk
Components of the strategy rely on offchain processes operated by Neutral Trade: delta calculations, transfers between Ceffu and the onchain vault, and daily PnL settlement. Failures in these processes could affect performance or access to funds.
Exchange and custody risk
Exchange and custody risk
The hedging infrastructure routes USDC through Ceffu and a Binance sub-account. This introduces exchange liquidity risk, market dislocation risk, and settlement behavior risk (e.g. auto-deleveraging). These risks are reduced by the custody setup but not eliminated.