The Klara Card System is the layer that transforms your crypto-backed credit into real world spending. Everything that happens inside the vault and the credit engine eventually flows into this one product. The card is the bridge between onchain finance and everyday life.

The entire system is designed to make spending feel as simple as any normal debit or credit card, while keeping all collateral and financial logic onchain in your control.

We break it down below.

3.1 Overview

The Klara Card System is made up of two card types, virtual and physical. Both pull from your onchain credit line, not your vault assets. That means your crypto remains untouched while the credit engine mirrors its value into spendable balance.

The Klara Card acts like a traditional payment card on the surface but underneath it interacts with your credit engine and settlement layer to keep everything synced with your vault.

Everything is instant.
Everything is synced live.
Everything stays in your control.

3.2 Virtual Cards

Virtual cards are the first type of Klara card you interact with. They are created inside the Klara App with a single tap and are meant to give you flexible, risk-free spending options.

Use cases

Virtual cards are perfect for:

• subscriptions
• online payments
• travel expenses
• temporary spending categories
• testing new merchants
• separating personal and business expenses
• reducing fraud exposure

You can create as many as you need. There is no limit.

Controls

When creating a virtual card, you can assign:

• a custom spending limit
• the credit allocation it pulls from
• a category label
• a lock timer
• usage region preferences
• merchant restrictions

If a card ever looks compromised, you can freeze it in one tap or delete it instantly. Deleting a card does not affect your credit line or vault.

Security

Virtual cards carry less risk than physical cards. If a card number leaks, only that card is affected.
Your vault, your physical card, and your other virtual cards stay untouched.

3.3 Physical Card

The physical Klara Card is your everyday carry, designed to work anywhere major payment networks are accepted. Even though the backend is fully onchain, the front end behaves like a standard debit or credit card.

Features

• NFC and tap payments
• Chip and PIN support
• Apple Pay and Google Pay compatibility
• Online and offline authorization flow
• Magnetic stripe fallback where required

The card itself does not store your crypto. It does not hold a balance. It only interacts with the Klara Credit Engine.

Design

The material, layout, and form factor are created to reflect security and simplicity. The physical card gives users a traditional spending experience powered entirely by onchain credit.

Use cases

• restaurants
• retail stores
• travel
• hotels
• POS terminals
• emergency offline use (where supported)

This card is ideal for daily life spending.

3.4 Card Features

The Klara Card System includes a set of features designed to protect the user, improve spending flexibility, and make crypto-backed credit feel exactly like traditional finance, but without the middleman.

Real time credit sync

Every purchase updates your credit usage instantly.
Your credit engine recalculates your available credit in real time and syncs it to the app.

Usage analytics

Your spending is automatically categorized into:

• travel
• food
• entertainment
• subscriptions
• utilities
• transfers
• business expenses

These categories help with budgeting and financial management.

Dynamic spend protection

Klara analyzes:

• unusual merchant behavior
• suspicious locations
• repeated declines
• risky patterns

If something looks wrong, the system alerts you or temporarily blocks the transaction.

Limit management

You can control:

• daily limits
• per transaction limits
• merchant specific limits
• card specific limits

Limits update instantly without waiting for issuer approval.

Freeze or unfreeze anytime

You can freeze:

• one virtual card
• multiple virtual cards
• the physical card
• every card at once

Unfreezing works instantly.

Merchant insight

Every transaction provides:

• merchant name
• category
• location
• device used
• settlement amount
• credit usage percentage

One tap replacement

Lost your physical card?
Request a replacement from inside the app.
Your virtual cards stay active.

3.5 Upcoming Card Features (Coming Soon)

These are future features that will be added as the product expands.

Credit builder mode

Helps users grow onchain credit history for better limits.

Customizable card designs

Limited editions and user themed card styles.

Subscription auto control

Automatic pausing of forgotten or unused subscriptions.

Geo spending profiles

Setting card behavior depending on location.

Business multi card

Team spending cards for company accounts.

Conclusion

The Klara Card System is the visible surface of a deeply onchain financial engine. It gives users the simplicity of a traditional card with the control of self custody, the flexibility of virtual cards, and the power of a crypto-backed credit line.