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a code issue? cat door thru interior wall to basement stairs

We are planning to install a cat door leading from laundry room near the top of stairs to the unfinished basement.
We are getting tired of propping open the door at the top of the basement stairs. It lets cold air into our main living area. We would rather patch up drywall, rather than make a hole in the door, and have to replace it, when we plan to sell the house.
Is it a fire hazard to have the cat door in this way? How best to minimize the insulation loss?

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