Sorry I didn't post until technically today. I've been busy at church, watching the Bengals lose, and watching YouTube videos with my siblings before I leave them again.
Jude now in verse 2 greets his readers. "Mercy" is only used three other times in letters to two men, both by Paul when he is writing to those very close to him and whom he had trained, and whom he knew were believers (Timothy and Titus). As is evident in verse 3 ("beloved"), the readers are close to Jude, and may have even been led by him at one time. And as already seen in verse 1, they are believers. "Peace" is a traditional Hebrew greeting.
The application: Jude is not capable of giving mercy, peace or love to his readers. Rather he is wishing peace and love to be multiplied to them as a result of the mercy that has been received. Knowing that they have already received God's mercy can give him assurance that God will also give them peace (Phil. 4:7; Col. 3:15; Eph. 2:14-17) and love ( Song 2:4; II Cor. 5:14; I John 4:7-21- also the ability TO love and not to fear), even in the circumstances he is writing about.