SolanaFloor reports that Fluid co-founder Samyak Jain has acknowledged that the protocol’s vaults are “not fully isolated” and engage in collateral rehypothecation to enhance capital efficiency. In practice, this means that assets like SOL, posted by users to borrow other tokens such as USDC, can be re-lent into looped positions or other strategies involving assets like JupSOL or INF. This structure implies that user funds are not strictly segregated per vault, potentially exposing collateral to broader protocol risks through these re-lending mechanisms.