Are there any fees to use Borrow?
The primary cost of borrowing is the variable interest rate you pay on your loan, which is clearly displayed for each asset.
Here's a simple breakdown:
-
Protocol Fee:
- Protocol doesn't charge any additional fees on top of the interest payments -
Solana network costs:
- Metaplex metadata account: ~0.0151 SOL (to show NFT name and logo)
- NFT position account: ~0.00146 SOL (network rent paid for the NFT)
- Ticks initialization: ~0.00246 SOL (allows D/C ratio setup for your specific borrowed asset pair)
What is tick initialization?
Jupiter Lend uses a tick-based system to manage liquidations across different debt-to-collateral ratios.
A tick represents a specific ratio level inside a vault. When a position enters a new ratio level that hasn’t been used before, the protocol initializes the corresponding tick on-chain.
Ticks are spaced by 0.15% and are shared globally within a vault: once a tick is initialized by any user, all users can reuse it. Each tick is created only once per vault.
As vault usage increases, fewer new ticks need to be initialized, which reduces transaction costs over time.
Tick initialization during liquidations:
In some cases, liquidations require initializing an additional on-chain account to store liquidation data for a given tick. Each liquidation-related tick account can record up to three liquidations. After the third liquidation, a new one may need to be initialized. These liquidation tick accounts are:
• Shared globally per tick per vault (not per user)
• Initialized only when needed
• Usable for three liquidations before a new one is required
This tick-based design is a key reason why liquidations on Jupiter Lend are highly efficient and minimally punitive, enabling lower liquidation penalties and higher LTVs.
What are the risks of using Borrow?
Beyond the risk of liquidation, decentralized financial borrowing has other risks you should know:
- Smart Contract Risk: The potential for a bug or vulnerability in the code that could be exploited.
- Market Risk: The general volatility of crypto assets can affect the value of the collateral you provided for borrowing.
Please use this product carefully and never borrow more than you can comfortably repay.
What happens if my collateral's value drops?
This is the most important risk to understand when borrowing. To protect the health of Jupiter Lend, if the value of your collateral falls below a certain threshold, your position is at risk of liquidation. This means some of your collateral may be automatically sold to repay your loan.
It is crucial to monitor your loan's health and either add more collateral or repay part of your loan if the value of your collateral decreases.
What do Vaults have to offer?
Vaults let you borrow assets using specific collateral types.
You can create multiple vaults with different asset pairs, manage risk independently, and use advanced strategies directly from the Borrow section of Lend.
Powered by Fluid's modular Liquidity Layer, these vaults offer:
- Highest LTVs(Loan to value), borrow up to 95% of your collateral’s value
- Better rates for both lenders and borrowers
- Ultra-low liquidation penalty (as low as 0.1%)
- Automated ceilings to prevent risky whale movements
- Efficient liquidations with 3–4× lower gas costs
- Maximum capital efficiency through unified liquidity across protocol
How often is my collateral value updated and my borrow rate charged?
Your collateral value and interest rate are updated continuously on-chain.
The collateral price comes from real-time oracle feeds (updated every few seconds), and borrow interest accrues continuously based on your open position.
There’s no fixed charging schedule, the borrow cost is automatically reflected in your position’s health and total debt whenever you open or refresh the page.
What is the Position NFT?
Each Borrow or Multiply position is represented by a Position NFT, created at the moment the position is opened.
This NFT stores all the position data, including collateral, debt, and risk parameters, and represents ownership of the position.
The NFT is transferable: moving it to another wallet transfers the entire position.
Do not burn this NFT, as it is required to manage and withdraw the funds associated with the position.
I have JLP collateral and want to borrow, should I use JLP Loans or Jupiter Lend?
If you only want to borrow USDC using JLP as collateral, you can use JLP Loans, which is made for that specific pair.
If you want to borrow other assets, use Multiply, or manage several strategies in one place, then use Jupiter Lend.
Jupiter Lend also gives access to features like partial liquidation, cross-asset borrowing, and better capital efficiency.
How much can I borrow?
The amount you can borrow depends on the value and type of collateral you supply. Each asset has a specific "Loan-to-Value" (LTV) ratio, which means for every $100 worth of collateral, you can borrow up to a certain amount (e.g., $75).You can see the specific LTV for each asset when you select it.