Borrow on Jupiter Lend follows a simple, collateralized process.
You open a borrow position by depositing supported assets as collateral and borrowing another token against it. The LTV (collateral-to-borrow ratio) depends on the specific asset pair you use.
Your position is then continuously evaluated using real-time oracle prices to track risk levels and ensure the vault remains properly collateralized.
Opening a borrow position
When you borrow, Jup Lend creates a dedicated vault for your position.
This vault stores your deposited collateral, the borrowed amount, and key parameters such as LTV, health factor, and liquidation thresholds.
Your borrowing capacity depends on the asset’s Loan-to-Value (LTV) ratio. For example, if SOL has an LTV of 75%, you can borrow up to 75% of your collateral’s value in USD.
Example:
You deposit 10 SOL worth $2,000.
At 75% LTV, your maximum borrow amount is $1,500 USDC.
Borrow less than the maximum if you want to stay safe, that gives you a healthy buffer against price drops.
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.
Understanding your position
Several key metrics determine your position’s safety and risk level:
Loan-to-Value (LTV) shows how much you’ve borrowed compared to your collateral’s value. Staying below the maximum LTV keeps your vault healthy.
Liquidation Threshold (LT) is the point where your vault can start being partially liquidated. If your collateral drops below this level, part of your position may be sold.
Liquidation Max Limit (LML) is the hard limit, if your ratio exceeds this, your vault may be fully liquidated.
Health Factor (HF) measures your position’s overall safety. A health factor above 1 means you’re safe. Below 1, liquidation may occur.
→ Keeping your HF above 1.2 provides a good safety margin.
The protocol continuously checks these values using live price feeds from Pyth, Chainlink, and Redstone.
Your health factor updates automatically as prices fluctuate, ensuring that your vault always reflects real-time market conditions.
Note: When your health factor drops below 1, the system automatically starts a partial liquidation to restore balance.
Managing your position
You can view and manage your vault directly from the Borrow page.
Each position displays its collateral value, borrowed amount, LTV, and health factor, all updated in real time.
You’re able to:
- Repay part or all of your loan anytime.
- Withdraw part of your collateral if your health factor remains healthy.
- Close your position fully by repaying your total borrowed balance.
Tip: Keeping your health factor comfortably above 1.2 ensures your position stays safe during price volatility.
Liquidation logic (simplified)
If your collateral value falls and your LTV exceeds the liquidation threshold,
the protocol triggers a slot-based partial liquidation.
Only the minimum amount of collateral needed to restore your vault’s health is sold.
Afterward, your vault is automatically rebalanced and recalculated.