Defrag protocol introduces a groundbreaking solution for insuring NFTs through the implementation of a Put Option instrument. This innovative feature enables users to leverage their NFTs by obtaining loans with accurately assessed risk. By owning an NFT, users gain a stake in the initial Underwriting Pool, granting them the opportunity to earn premiums and access the realm of NFT collateralized loans. Additionally, the platform facilitates fractional borrowing through smart contracts, generating a predetermined number of tokens that are directly linked to the original NFT.