Jupiter Exchange is facing scrutiny from the Solana community following revelations about the underlying mechanics of its Lend product. Fluid co-founder @smykjain acknowledged that Jupiter Lend vaults utilize rehypothecation strategies for capital efficiency and are effectively "not completely isolated." This admission contradicts earlier marketing narratives suggesting total risk isolation, raising concerns that a failure in one vault could potentially affect others. Kamino's co-founder also weighed in, arguing that this setup contradicts the product's expected risk profile. [Update 1] A Jupiter Exchange team member has issued a formal clarification regarding the controversy. The team admitted that a promotional video claiming "zero risk of contagion because of isolated vaults" was not fully accurate and has since been removed. This clarification follows technical pushback from the ecosystem and aims to align marketing messaging with the actual rehypothecation mechanics of the lending vaults.