Clara Cover is an automated insurance agent in the Bitmore lending protocol that prevents borrowers from being liquidated when BTC collateral falls.

About Bitmore:
Bitmore lets you own Bitcoin with a down payment and mortgage-style monthly payments—no KYC required.

With Bitcoin’s price now exceeding six figures, and DeFi demanding 1.33 BTC as collateral for a 1 BTC loan, BTC ownership has become out of reach for most. As billions in stablecoins chase yield, the time is ripe for a credit primitive that matches upside-seeking BTC borrowers with yield-hungry lenders.
Bitmor offers under-collateralized “Bitcoin mortgages.” Borrowers contribute ≥20% of the BTC price in USDC; lenders provide the remaining 80% in USDC. The protocol purchases BTC on-chain and escrows it, releasing ownership proportionally with each on-time payment. Fixed, predictable, scheduled payments and exposure to 100% of a Bitcoin from day one. Missed payments trigger only micro-liquidations to cover the month’s lender obligations. Loans may also be prepaid at any time.

About Clara:

• She fetches loan parameters (principal, collateral, origination price) via the smart contract.
• Computes the insured amount as loan_principal – collateral_value (e.g. $80 K insured on a 1 BTC loan at $100 K with $20 K collateral).
• Determines the optimal PUT option—choosing strike and expiry based on origination date (loans opened between the 1st–20th use that month’s expiry; after the 20th roll to next month) and matching total BTC value to protect.
• Prompts the user to approve the purchase.
• Executes the trade on Deribit, buying the market PUT that covers the insured amount.
• Rollover logic: on each monthly expiry, closes expiring positions, checks payment status, and—if the borrower stays current—intelligently selects and buys the next month’s PUT.

By repeating this cycle—querying live loan data, recalculating coverage needs, and selecting the best strike/expiry each period—Clara Cover consistently shields both borrower collateral and lender capital from market downturns.