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% |
| Withdrawal fee | 0.3% (redistributed to existing depositors) |
| Redeem period | 3 days + 1 day lock after deposit |
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.
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.