Loans

This page covers JLP Loans: how to borrow USDC against your JLP, the LTV thresholds, how the borrow rate works, and how liquidation is handled.

What is JLP Loans?

JLP Loans allows users to deposit JLP tokens as collateral to borrow USDC. The position continues to earn JLP yield while the loan is active, allowing users to access liquidity without exiting their JLP position. The protocol uses an overcollateralized lending model with dynamic interest rates based on utilization. The Loans page shows live metrics at the top:

Metric	Description
Available Liq.	Total USDC currently available to borrow. New loans are limited by this liquidity.
Utilization	Share of the available USDC that is already borrowed. Drives the borrow APR.
Max LTV	Maximum loan-to-value ratio when opening a position.
Liq. LTV	LTV at which the position becomes eligible for liquidation.
Liq. Penalty	Fee applied to liquidated collateral.
Borrow APR	Current annualised borrowing rate, adjusted based on utilization.

Key Parameters

Parameter	Value
Collateral	JLP
Borrowable asset	USDC
Maximum LTV	90%
Liquidation LTV	95%
Liquidation fee	2% of liquidated collateral

Loan-to-Value (LTV)

The Loan-to-Value (LTV) ratio represents the ratio between your outstanding debt and the USD value of your JLP collateral.

LTV = Outstanding Debt (USD) / JLP Collateral Value (USD)

LTV Thresholds

Threshold	Value	Meaning
Maximum LTV	90%	Maximum you can borrow against deposited collateral
Liquidation LTV	95%	LTV at which the position becomes eligible for liquidation

Example

With $10,000 worth of JLP deposited:

Action	Amount	LTV
Maximum initial borrow	$9,000	90%
Liquidation threshold	$9,500 debt	95%
Recommended safe borrow	$6,500	65%

Position Management

Each user can hold a single lending position. The Loans interface provides two modes to interact with that position:

Deposit / Borrow
Repay / Withdraw

Used to open or grow a position. You deposit JLP as collateral and borrow USDC against it. HALF / MAX shortcuts let you fill the input with half or all of your available JLP balance.

The “My Position” panel displays the current state of your position:

Field	Description
Collateral	JLP deposited as collateral
Debt	Outstanding debt (principal + accrued interest) in USDC
LTV	Current loan-to-value ratio
Liq. Price (JLP)	Estimated JLP price at which the position will be liquidated
Curr. Price (JLP)	Current JLP virtual price, for reference against the liquidation price

Borrow Rate

The borrow APR is dynamic and adjusts based on pool utilization. Higher utilization means a higher borrow rate.

Utilization Formula

Utilization = (Locked for Trading + Total Borrowed) / Total Pool Size

Show Rate Calculation (code)

// When utilization ≤ 80% (linear curve)
Rate Increase = (Target Rate - Min Rate) × Utilization / Target Utilization
Yearly Rate   = (Min Rate + Rate Increase) × 10^9 / 10,000

// When utilization > 80% (jump rate curve)
Rate Diff         = Max Rate - Target Rate
Util Above Target = Utilization - Target Utilization
Remaining Cap     = 10^9 - Target Utilization
Extra Rate        = (Rate Diff × Util Above Target) / Remaining Cap
Yearly Rate       = (Target Rate + Extra Rate) × 10^9 / 10,000

// Convert to hourly and APR
Hourly Rate = Yearly Rate / (24 × 365)
Borrow APR  = (Hourly Rate / 10^9) × 24 × 365 × 100

The specific rate parameters (jumpRateState, borrowsFundingRateState) are defined per custody account.

Liquidation

Liquidation is triggered when a position’s LTV exceeds the Liquidation LTV of 95%. Only whitelisted keepers can execute liquidations.

Partial Liquidation

When a position exceeds the liquidation threshold but is not critically under-collateralized, the protocol performs a partial liquidation:

Repays a portion of the outstanding debt
Burns only the required amount of JLP collateral
Brings the position back toward a safer LTV range
Allows the user to retain the remaining collateral and position

Partial liquidation is only triggered when the position size exceeds a minimum liquidation size, to avoid dust liquidations.

Full Liquidation

A full liquidation is triggered when:

The position’s LTV significantly exceeds the liquidation threshold (approximately 97%+)
Market volatility is extreme
Partial liquidation alone would be insufficient to restore solvency

Full liquidation repays the entire outstanding debt, burns the necessary JLP collateral, and returns any remaining collateral to the user after fees.

Liquidation Fee

A 2% fee is applied to the liquidated collateral. This fee is deducted from the collateral burned and deposited into the JLP pool as protocol revenue.

If your position is fully liquidated, you may lose a significant portion of your deposited JLP collateral. Monitor your LTV regularly, especially during periods of JLP price volatility.You can avoid liquidation at any time by depositing additional JLP collateral or repaying part or all of your outstanding debt.

Jupiter Liquidity Provider (JLP)

Products

What is JLP Loans?

Key Parameters

Loan-to-Value (LTV)

LTV Thresholds

Example

Position Management

Borrow Rate

Utilization Formula

Liquidation

Partial Liquidation

Full Liquidation

Liquidation Fee

​What is JLP Loans?

​Key Parameters

​Loan-to-Value (LTV)

​LTV Thresholds

​Example

​Position Management

​Borrow Rate

​Utilization Formula

​Liquidation

​Partial Liquidation

​Full Liquidation

​Liquidation Fee

What is JLP Loans?

Key Parameters

Loan-to-Value (LTV)

LTV Thresholds

Example

Position Management

Borrow Rate

Utilization Formula

Liquidation

Partial Liquidation

Full Liquidation

Liquidation Fee