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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.

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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 are reinvested into the JLP pool:
  • Opening and closing fees
  • Price impact fees
  • Borrow fees
  • Swap fees and JLP mint/burn fees
The remaining 25% goes to Jupiter as protocol revenue. As fees accumulate in the pool, 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 estimated APY displayed on the Earn page is updated every 7 days, using the previous week’s fees as the basis for the calculation.

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JLP Virtual Price and AUM

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Virtual Price

VirtualPrice=TotalJLPPoolAssets(USD)/TotalJLPSupplyVirtual 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.

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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.

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SOL Staking

A portion of idle SOL in the JLP pool is natively staked to the Jupiter validator to generate additional yield for JLP holders. 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.

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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.

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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.

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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.