> ## Documentation Index
> Fetch the complete documentation index at: https://docs.jup.ag/llms.txt
> Use this file to discover all available pages before exploring further.
# Earn
> How JLP generates yield, how the pool's value is calculated, and what risks JLP holders are exposed to.
This page explains how JLP generates yield for liquidity providers, how the pool's value and virtual price are calculated, and what risks are involved in holding JLP.
## How JLP Generates Yield
JLP holders earn yield passively through the appreciation of the JLP token price. There are no tokens to stake or yields to manually harvest — yield is embedded directly into the token's value.
**75% of all fees** generated by [Jupiter Perps](/user-docs/trade/perps) are reinvested into the JLP pool:
* Opening and closing fees
* Price impact fees
* Borrow fees
* Swap fees and JLP mint/burn fees
* Liquidation penalties (remaining collateral from liquidated positions also flows into the pool)
The remaining 25% goes to Jupiter as protocol revenue.
Fees are redeposited into the pool **hourly**. As they accumulate, the pool's total AUM increases, which increases the JLP virtual price. Every JLP token you hold becomes worth more over time as the pool grows.
The APY displayed on the Earn page is **denominated in USD** and reflects only the 75% of Perps fees distributed to LPs. It does **not** include the appreciation or depreciation of the underlying assets (SOL, ETH, wBTC) or the impact of trader PnL. Your actual return on JLP can be higher or lower than the displayed APY depending on market conditions.
The figure is updated every 7 days, using the previous week's fees as the basis for the calculation.
***
## JLP Virtual Price and AUM
### Virtual Price
```math theme={null}
Virtual Price = Total JLP Pool Assets (USD) / Total JLP Supply
```
The virtual price is the baseline value of JLP derived from the pool's onchain state. It reflects the pool's actual asset value per token.
### AUM Limit and Market Price
The JLP pool has a maximum AUM (Assets Under Management) limit. When this limit is reached, new JLP can no longer be minted directly from the pool.
If the AUM limit is hit, market demand typically causes JLP to trade at a **premium** above its virtual price on secondary markets.
* You can always sell JLP at the market price
* If the market price falls below the virtual price, JLP is redeemed at the virtual price, not the market price
The current TVL and AUM limit are visible on the JLP Earn page.
***
## Acquiring and Exiting JLP
JLP can be acquired or exited through two paths:
Swap any token for JLP, or JLP back to any token, via Jupiter Swap. This is the recommended method for most users and typically offers the best execution.
Mint JLP by depositing assets directly into the pool, or burn JLP to redeem the underlying assets.
**Mint:** select the asset you want to deposit (SOL, ETH, WBTC, USDC, or USDT). HALF / MAX shortcuts let you fill the input with half or all of your wallet balance.
**Burn:** select the asset you want to receive. The JLP is burned and the equivalent value is sent to your wallet in the selected token.
Both actions are subject to a **weightage-based fee** that depends on the asset and its current vs. target weighting in the pool:
* Base rates: **10 BPS** for non-stablecoin assets (SOL, ETH, wBTC), **2 BPS** for stablecoins (USDC, USDT)
* The final fee is adjusted up if the action moves the asset further from its target weightage, or down if it moves closer
Direct mint is also subject to the AUM limit: minting is unavailable when the pool's AUM cap is reached. In that case, use Jupiter Swap instead.
Reference implementation: [calculate-mint-burn-jlp.ts](https://github.com/julianfssen/jupiter-perps-anchor-idl-parsing/blob/main/src/examples/calculate-mint-burn-jlp.ts)
***
## SOL Staking
A significant portion of the SOL held in the JLP pool is natively staked to the Jupiter validator to generate additional yield for JLP holders. The exact staked amount is visible on the JLP Earn page next to the SOL pool size.
This staking is handled at the protocol level — it does not require any action from JLP holders and does not affect their ability to withdraw or trade.
The staked SOL goes through Solana's standard deactivation process when unstaking is required. Deactivation takes up to two epochs (\~2-3 days). The protocol monitors pool utilization to ensure sufficient liquid SOL is available at all times.
***
## Exposure
As a JLP holder, your position is exposed to:
* **Price movements** of the non-stablecoin assets in the pool (SOL, ETH, wBTC). A decline in these prices reduces JLP value.
* **Trader PnL** — when traders are profitable, their gains are paid from the pool. When traders lose, those losses are added to the pool.
JLP tends to perform relatively better during sideways or bearish market conditions, as traders are less likely to be profitable. During strong bull markets, increased trader profitability can reduce JLP value relative to simply holding the underlying assets.
***
## Composability
JLP is a standard SPL token. It can be transferred, traded on AMM pools, and used as collateral in other protocols — including [JLP Loans](/user-docs/earn/jlp/loans).
***
## Risks
Holding JLP carries several risks. Make sure you understand them before providing liquidity.
Rapid price movements in SOL, ETH, or wBTC directly impact JLP value. Extreme market events may amplify losses beyond what the fee yield can offset.
JLP holders act as the counterparty to all traders on Jupiter Perps. Sustained trader profitability reduces the pool's value.
The protocol is audited, but no audit eliminates all risk.
In strong bull markets, JLP may underperform compared to holding the underlying assets directly.