  Magnetized neutron stars power at least some ultra-luminous X-ray sources.
The accretion flow in these cases is interrupted at the magnetospheric radius
and then reaches the surface of a neutron star following magnetic field lines.
Accreting matter moving along magnetic field lines forms the accretion envelope
around the central object. We show that, in case of high mass accretion rates
$\gtrsim 10^{19}\,{\rm g\,s^{-1}}$ the envelope becomes closed and optically
thick, which influences the dynamics of the accretion flow and the
observational manifestation of the neutron star hidden behind the envelope.
Particularly, the optically thick accretion envelope results in a multi-color
black-body spectrum originating from the magnetospheric surface. The spectrum
and photon energy flux vary with the viewing angle, which gives rise to
pulsations characterized by high pulsed fraction and typically smooth pulse
profiles. The reprocessing of radiation due to interaction with the envelope
leads to the disappearance of cyclotron scattering features from the spectrum.
We speculate that the super-orbital variability of ultra-luminous X-ray sources
powered by accreting neutron stars can be attributed to precession of the
neutron star due to interaction of magnetic dipole with the accretion disc.
