Level01
Level01 Derivatives Exchange – is a peer to peer (P2P) derivatives exchange that allows investors to trade options contracts directly with one another, without requiring an intermediary or broker.
Contents
What Is Level01?
Level01 is a peer to peer (P2P) derivatives exchange that allows investors to trade options contracts directly with one another, without requiring an intermediary or broker.
Level01 combines Distributed Ledger (DLT) Technology for transparent and automated trade settlement on the blockchain, with Artificial Intelligence (AI) analytics that provides fair value pricing dynamically to counterparties in a trade, based on current & retrospective market data.
The platform intends to effectively removes all forms of friction in the user experience present in conventional or cryptocurrency exchanges, such as time-consuming fund deposits/withdrawals, and wallet security concerns; allowing investors to fully focus on trading activities.
The Level01 platform facilitates transparency & equality, and is designed to provide the most fair, efficient, even level trading field for both retail & commercial investors.
Analysis
P2P vs BROKER EXCHANGE
Peer to peer (P2P) trading involves two parties dealing directly with each other in a trade transaction. Since a 3rd party is not involved to mediate the transaction, there are possible circumstances of non-performance from either party during settlement of a trading transaction.
Trading through a broker provides an intermediary for more efficient trading, but leaves the investors and their funds susceptible to other types of risk and exposure such as exorbitant transaction fees, withdrawal delays, market manipulation, brokers trading against clients, or exchange hacks.
Level01 utilizes smart contracts & blockchain technology for automated P2P trade settlements, effectively resolving trust and non-performance issues; while allowing investors to circumvent negative aspects of a centralized brokerage.
Product
HOW TRADING WORKS
Level01’s mobile app enables investors to interact directly with each other for trading. Investors can trade risk or hedge positions by issuing options contracts for counterparties to match with on the Level01 platform.
1. Investors select asset category they are interested in, such as FOREX or CRYPTOCURRENCY, and selects asset market to trade in, such as USD/EUR or ETHEREUM.
2. Investors trade by issuing option contracts into markets: by defining contract parameters ‘EXPIRY’, ‘STRIKE PRICE’ & ‘POSITION’, and contract TOTAL VALUE; or selecting an existing option contract to act as matching counterparty.
3. When an options contract is matched with a counterparty, all parameters are sent to the Level01 smart contract on the blockchain. The smart contract receives permission from both parties to handle token funds and performs trade settlement upon option contract maturity (expiry).
Key Features
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- Simple / Advanced Trading
- Simple, effective trading experience with advanced features for experienced users.
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- Automated Blockchain Settlement
- Automated, transparent trade settlement handled by blockchain smart contracts.
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- Transparent Market Data
- Fully transparent market data verified by 3rd party oracle service providers.
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- Market Asset Variety
- Trade both traditional & cryptocurrency market assets for more opportunities.
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- FairSenseTM Artificial Intelligence
- AI analytics fair price discovery enabling better quality trade matching experience
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- Trade Room Hosting
- LVX token staking mechanism enables trade room hosting to earn commissions
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- Instant Deposit / Withdrawals
- Trader has full control over funds and deposits/withdrawals are done instantly.
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- Hotswap Capability Token Wallet
- Instantly change platform native token to Bitcoin or Ethereum for more liquidity.
Technology
The blockchain is a digital, decentralized, public ledger popularized as the technology behind the now renowned cryptocurrency, Bitcoin. The technology is also known as Distributed Ledger Technology (DLT). The blockchain’s unalterable method of storing data makes it ideal for performing, verifying and storing transactions.
Level01’s architecture leverages blockchain technology to perform automated trade settlements and profit distributions instantly upon settlement events occurring. These transactions are executed by unbiased, self enforcing mini-programs on the Ethereum blockchain called ‘smart contracts’; ensuring all transactions are carried out in a tamper-proof and transparent manner.
Blockchain and smart contracts area a trusted default technology intermediary because it is open to anyone for verification of execution code and transaction processes that will take place for every event.
Fairsense™ AI
FairSense™ is the underlying technology of Level01’s fair value AI analytics assisted pricing discovery mechanism, which is designed using cross-stream analytics that are usually only available to institutional organizations.
FairSense™ automatically assists investors to assess fair values of contracts they seek to trade and continuously update their bid or offer price relative to the FairSense™ implied value thus offering fair value pricing to both sides of a trade, that is accurately adjusted every second (tick by tick) to current live market conditions.
FairSense™ algorithms observe and sequence real-time, cross-market variables in the most liquid financial markets, which provide the most consistent market prices thus allowing investors to trade consistently with other assets globally, providing improved liquidity and price discovery on Level01’s peer-to-peer exchange.
LVX Token
The Level01 Exchange (LVX) token is an ERC20 token on the Ethereum blockchain, and functions as a medium of exchange and store of value within the Level01 financial ecosystem.
The LVX token provides the means to transparent and fair settlement on the blockchain, because it can be handled/automated by smart contracts and programmatically disbursed to trade winners as trading profits.
LVX tokens can also be ‘staked’ by investors to host trading rooms where group trading events are held, and investors earn traderoom hosting commissions. The staked tokens are reimbursed by the smart contract after a staking duration
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- STORE OF VALUE
- The LVX token provides use as a store of value and blockchain asset within the Level01 financial ecosystem.
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- MEDIUM OF EXCHANGE
- The LVX token facilitates transactions between investors as a standard operating exchange medium within Level01.
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- LIMITED SUPPLY
- Predetermined fixed supply token promotes appreciation and increased demand from scarcity as user base grows.
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- INCENTIVIZED STAKING
- Integrated token staking functionality promotes variation in user base participation and ecosystem network effect.
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- AUTOMATION
- The token’s digital nature allows transparent & trustless interoperability with blockchain for automated settlement.
Team
Jonathan Loi – Level01 Founder
Founder and director of public listed technology company in Australia, and inventor of its patented core technology. Experience growing a company from startup to public offering. Extensive knowledge in mobile hard/software product design and UI/UX technologies. Involved in machine learning.
Adam Ooi – Level01 Co-Founder
Extensive background in corporate operations for over 15 years. Highly skilled at maximizing the resources of an organization and recognise the best growth path for a company. An early partner of the founder in an Australian public listed company. Built, nurtured and led companies to over $125M in M&A.
Charles Wong – Chief Marketing Officer
A pioneer in social media marketing and one of the early entrants in the digital marketing industry since 2009. His agency is also one of the earliest to embark on blockchain and crypto-related marketing in South East Asia. He is ranked on Google as “Best Social Media Consultant in Malaysia”.
Naglis Vysniauskas – Head Quant Developer
Quantitative finance guru with extensive experience in derivatives pricing, risk & trading. Helped oversee over $25B AUM and designed, implemented and managed one of the most advanced pension hedging & absolute return solution at UK’s largest asset management Co.
Mohammad Dabiri – Chief Systems Architect
Professional software engineer & system architect. Experienced designing impactful high-performance solutions. MSc Science & Computer Engineering. Led several worldwide projects successfully to production in various industries: finance, ERP & trading. Key backend system architect of Level01 platform.
Advisor
Michael Go – Asia Pacific Head of Trading Markets, Thomson Reuters
Michael Go is the Head of Asia Pacific Trading Markets Development at Thomson Reuters, a global multinational mass media, data & information corporation. Michael has a wealth of over 20 years of experience in the Finance, Banking, Capital Markets and Trading industries, and keen insights of technologies & trends that affect or influence these industries. Michael’s deep finance network and background allows Level01 to tap insight knowledge, expertise and cooperation which are resources necessary to facilitate the development of the innovative, world-class Level01 platform.
Itai Damti – Co Founder, Leverate / CEO, Antifragile
Itai Damti is the Co-Founder of Leverate, an industry leader in technology for online forex brokers, with over 100B USD in monthly trading volume. He is Entrepreneur de Residence (Fintech) at 500 Startups, a global VC & seed accelerator in San Francisco, USA. He is also Founder & CEO of Antifragile, a fintech consulting firm in Hong Kong. Itai’s expertise in developing financial systems & trading platforms is invaluable to Level01’s endeavours; and his insights in mentoring and leading accelerator programs wordwide such as Barclays Techstars (Tel Aviv) and HAX (China) provides Level01 with the guidance to navigate in uncertain situations.