Yeliz Akmaca 
Jupiter (JUP) Exchange’s lending products on Solana have sparked debate over the safety of user funds. The community believed investments were fully separate and secure. However, the company’s acknowledgment that some funds are used in other operations to generate yield has shaken trust.
Dhanda and Jain’s Statements
Jupiter COO Kash Dhanda admitted that social media posts claiming “zero risk” were inaccurate.
Dhanda said, “We said there was zero risk on social media, which wasn’t entirely correct. We deleted the post, but we should have issued a correction immediately.”
He also explained that the vaults are managed with their own rules, and a portion of the investments can be used in other operations. Fluid co-founder Samyak Jain confirmed that user funds are not completely separate but noted that each vault has its own limits, collateral ratios, and penalty rules. This ensures some level of protection but invalidates full isolation claims.
Rival Criticism and Community Concerns
Kamino co-founder Marius Ciubotariu criticized Jupiter Lend’s structure. On X, he wrote, “If you deposit SOL and borrow USDC, your SOL gets used in other positions. All the risk falls on you. There’s no isolation; risk spreads across investments.”
Ciubotariu also emphasized that “using the term ‘isolated’ this way is misleading,” noting that rehypothecation nullifies any isolation claims. Kamino blocked certain Jupiter tools to prevent misleading users and requested the migration tool to be fully two-way.
(Rehypothecation means deposited collateral or assets can be reused by the platform in other operations.)
An industry insider anonymously commented, “Claiming isolation while using funds elsewhere is a breach of trust.” This view reflects growing community concerns.
Key Takeaways:
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Some funds are reused in other operations
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Risk can spread to other investments
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Users may not fully understand the exposure
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Deleting previous posts reduced trust
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Rival and industry warnings highlight potential violations
Performance, TVL, and Future Plans
Jupiter Lend’s total value locked exceeds $1 billion. The protocol reported zero losses during the major market crash in October. Dhanda stated that each vault operates under its own rules and limits, generating yields through these mechanisms.
Ciubotariu countered, “The platform was only live for one month with few positions. It requires years of testing to call it ‘safe.’” Jupiter Lend offers loan-to-value ratios up to 90% and uses a “custom liquidation engine” to manage risk.
Jupiter plans to release additional documentation and an explanatory video after the Solana Breakpoint conference, aiming to increase user confidence and enhance security across the Solana ecosystem.
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