Following a recent $13 million exploit on Hyperliquid, concerns arose regarding the vulnerability of Jupiter’s JLP vault, a similar product. However, Jupiter is well-equipped against such attacks due to key architectural differences. Hyperliquid's vulnerabilities stemmed from trading thinly traded assets, allowing for price manipulations due to its dynamic internal order book. In contrast, Jupiter limits its perpetual trading to major assets like SOL and ETH, significantly reducing susceptibility to manipulation. Moreover, Jupiter executes trades against median on-chain prices from oracles like Pyth, rather than internal quotes, making it harder for traders to influence prices. Additionally, Jupiter employs automatic liquidation mechanisms, ensuring losses go directly to the liquidity provider pool without delays that an attacker might exploit. While not immune to risks, Jupiter has built-in defenses like borrow fees that increase with demand, helping to balance market risks. Therefore, although the potential for unforeseen scenarios exists, Jupiter's design supports greater safety compared to Hyperliquid, instilling confidence in its operations.

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