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| Beginner's Guide |
Jupiter Perps is a decentralized perpetual futures trading platform. This feature allows traders to speculate on the price movements of major assets like SOL, ETH, and WBTC with high leverage, no expiry dates, and minimal slippage.
This educational article will break down the essentials of Jupiter Perps and provide clear, step-by-step instructions to get you trading. By the end, you'll understand how to open, manage, and close positions while navigating risks like liquidation.
Let's dive in.
What Are Perpetual Futures (Perps)?
Perpetual futures, or "perps," are derivative contracts that let you bet on an asset's future price without owning the underlying token. Unlike traditional futures with fixed expiration dates, perps have no expiry, allowing you to hold positions indefinitely.They're popular in crypto for their flexibility and ability to go long (betting on price increases) or short (betting on decreases).Here are some Key perks you need to look into.
Key perks of perps:
==> Leverage: Amplify your exposure (e.g., control $10,000 with $1,000 collateral).
==> Hedging: Protect spot holdings against downturns.
==> 24/7 Trading: No market hours - trade anytime on Solana's high-speed network.
However, leverage cuts both ways: Gains magnify, but so do losses, potentially leading to liquidation if your position moves against you.
Why Trade Perps on Jupiter?
Jupiter Perps differentiates itself in the crowded DeFi derivatives space. Built on Solana, it leverages the chain's sub-second transaction speeds and near-zero fees for a smooth, CEX-like experience without centralized custody risks.Core Advantages Include:-
==> No Price Impact: Trades execute at oracle-based mark prices, enabling large orders without slippage.==> High Leverage: Up to 100x (recently expanded to 250x on select pairs like SOL, BTC, and ETH).
==> No Funding Rates: Traditional perps charge periodic fees to align contract and spot prices. Jupiter skips this, using a borrow fee system instead—traders pay fees to liquidity providers (LPs) hourly, creating predictable costs.
==> LP-Based Model: Liquidity comes from the Jupiter Liquidity Pool (JLP), a diversified pool holding SOL, ETH, wBTC, USDC, and USDT. LPs earn fees from trader borrows, making it attractive for passive earners.
==> Seamless Integration: Swap any Solana token into collateral via Jupiter's aggregator before trading—no need for wrapped assets or bridges.
==> Oracle Precision: Powered by the Dove Oracle (co-developed with Chaos Labs), it uses real-time data from Pyth and others for accurate, manipulation-resistant pricing.
==> Market Dominance: Jupiter captures ~66% of Solana's perp volume, with billions in monthly trading activity.
In short, Jupiter Perps is DeFi's answer to centralized giants like Binance or Bybit - decentralized, efficient, and Solana-native.
Key Concepts Before You Trade
Here are some of the few concepts and risk you need to know before trading,to avoid losing and error:-🚨 Leverage and Margin
==> Leverage: Borrow funds to increase position size. At 10x leverage, $100 collateral controls a $1,000 position.
==> Initial Margin: The collateral you deposit to open a position (e.g., 10% for 10x leverage).
==> Maintenance Margin: The minimum collateral to keep the position open. Falling below triggers liquidation.
🚨 Long vs. Short Positions
==> Long: Profit if the asset's price rises (e.g., buy SOL perps expecting a pump).
==> Short: Profit if the price falls (e.g., sell ETH perps during a dump).
🚨 Fees and Costs Borrow
==> Fee: Hourly charge (0.01–0.05% typically) paid to JLP holders - accrues based on position size and leverage.
==> Price Impact Fee: Simulates slippage for large trades, optimized by experts like Gauntlet.
==> Transaction Fees: Solana's gas (~$0.00025 per tx) + Jupiter's small protocol fee.
==> No Funding: Keeps costs lower than competitors.
🚨 Risks to Know
==> Liquidation: If losses eat into your margin below the maintenance threshold, your position auto-closes at a loss.
==> Oracle Risk: Rare price feed errors could lead to unfair liquidations (mitigated by Dove's audits).
==> Impermanent Loss for LPs: JLP holders face volatility risks.
==> Over-Leverage: High leverage (e.g., 100x) can wipe out positions on small moves - start low!
Always use stop-loss orders and never risk more than you can afford to lose.
To continue with the step-by-step guide on trading perps on Jupiter, click 'Continue' below 👇
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