Jade supports generating child BIP39 recovery phrases following the BIP85 specification. It creates a child recovery phrase from an index number and stores the wallet on Jade, allowing you to easily derive recovery phrases from a parent (or "master") wallet.
Child recovery phrases are useful for any situation that requires creating a new wallet when you do not want to expose your parent recovery phrase. If an attacker compromises your child recovery phrase, they still can't learn your parent recovery phrase.
For example, let's say you want to create a hot wallet on the Blockstream app for convenient spending and do not want to expose your Jade recovery phrase to a phone. You can simply generate a new recovery phrase using a specific index number. Instead of needing to back up an entire 12 or 24 word recovery phrase, you only need to keep track of the index number and the parent recovery phrase to restore the child wallet.
Child Recovery Phrase Generation Process
1.
During an active Jade session, select Options → Wallet → BIP85.
2.
Choose either a 12 or 24 word recovery phrase and enter your desired index number. Back up the recovery phrase which is derived from the current active wallet on Jade (including passphrase if used) and your selected index. If you ever need to view this recovery phase again, simply load the same wallet to Jade and enter the index number.