How Each Component Interacts
2.2 How Each Component Interacts
The Klara ecosystem works like a circle where every part feeds into the next. Nothing sits alone. Each component has a job, and together they form a single loop that turns your crypto into live, spendable credit without touching your collateral. Here is how the system fits together in a smooth flow.
1. It all starts with the Klara Vault
Everything begins when you deposit assets.
The moment your crypto enters the Vault, two things happen:
The Vault verifies the deposit onchain.
It sends updated collateral data to the Credit Engine.
The Vault never hands your assets over to Klara. Instead, it acts like a personal smart safe that your Credit Engine reads from.
2. The Vault sends collateral info to the Klara Credit Engine
The Credit Engine listens to your Vault non-stop.
It receives:
• Your collateral value
• Real time price feeds
• Market volatility signals
• Your current health ratio
• Your available credit capacity
The engine uses these inputs to calculate how much credit you can safely use.
This is the heart of the "spend without selling" system.
3. The Credit Engine updates your available spending power
Once the engine gets fresh info from the Vault, it updates your credit limit. This syncs instantly to your Klara App.
Inside the app you will always see:
• Total credit available
• Used credit
• Remaining credit
• Collateral health
• Any risk warnings
Your limit changes live based on the markets and your vault.
Everything stays in your control.
4. The Klara App becomes your dashboard and control panel
The App displays the data coming from both the Vault and the Credit Engine. It acts like a command center where you manage your cards, limits, preferences, and spending.
If you:
• create a new virtual card
• update a limit
• freeze a physical card
• adjust spending categories
The App sends these settings directly to the Credit Engine and Onchain Settlement Layer.
Everything acts immediately. No lag. No backend delay.
It’s instant.
5. When you spend, the Klara Card triggers the Credit Engine
Any time you swipe, tap, or use a virtual card online, the Klara Card communicates with the Credit Engine first.
The interaction looks like this:
Merchant request hits the card issuer.
Issuer requests authorization from Klara.
Klara routes the request to the Credit Engine.
The engine checks your credit limit.
If you have enough credit, the transaction is approved.
Then the Card finalizes the payment with the merchant.
Your vault is never touched during this process.
Only your credit is used.
6. The Klara Onchain Settlement Layer keeps everything synced
After the payment is approved, the Settlement Layer logs the transaction. It updates:
• Your used credit
• Your available credit
• Your repayment balance
• Your spending analytics
It also pushes transaction data into your onchain account state so everything remains auditable.
If you repay your credit, the Settlement Layer updates your vault status and syncs the new numbers back to the Credit Engine.
7. The Multi Chain Module sits beneath everything
Whatever network your collateral is on, the Multi Chain Module acts like a translator.
It ensures:
• The Vault reads deposits correctly
• Price feeds remain accurate
• Collateral value stays synced
• All interactions pass through the right chain
• Future chains can plug in effortlessly
You don’t need to worry about bridges or conversions.
The Multi Chain Module does the heavy lifting under the hood.
Putting it all together
Here’s the full cycle as a simple path:
Vault stores your crypto
→ Vault updates the Credit Engine
→ Credit Engine calculates your spendable limit
→ Klara App displays your live credit and controls
→ Klara Card lets you spend that credit anywhere
→ Settlement Layer logs the transaction and updates the system
→ Multi Chain Module keeps the data flowing across networks
Every part works together to let you spend your crypto without selling, without losing custody, and without giving up control.