Level01 Launching Derivatives Exchange on Blockchain to Make Brokers Obsolete in partnership with Thomson Reuters

https://level01.io

Peer-to-peer trading has long been a goal of the blockchain community, especially when it comes to the trade of stocks and cryptocurrency assets. Under a P2P trading platform, it would be possible for the cryptocurrency community to conduct trades without the need for intervention from any central authority or regulator inside of the exchange. Over time, the development of this idea actualized in the form of decentralized exchanges. But even on these exchanges, the trade of traditional stock derivatives without the use of a broker has not been the norm.

But according to executives at Hong Kong-based Level01 Derivatives Exchange, their platform is going to allow participants to trade derivatives contracts without the need for intervention of any third-party broker. The company claims that this new system will allow for the trade of derivatives without any kind of bias in an environment of ultimate transparency.

CEO Jonathan Loi outlined his belief in the efficiency of the system in an official comment, remarking that developer Thomson Reuters is an “industry leader” whose penchant for information technology promises that the “Level 01 algorithms” will be able to “perform most efficiently.”

Thomson Reuters will be the backbone of the information side of the platform, providing key information on the data regarding prices and reasonable settlement statistics. Loi outlined that the platform relies on a complex combination of sophisticated smart contracts that automatically settle transactions without the use of any outside action.

Disrupting Brokerage Platforms
A key aspect of the Level 01 team’s project is the disruption of existing brokerage platforms in the status quo. The firm posted an article on their website explaining that their platform helps to bypass the existing structure of brokerage platforms. According to the writer of this article, side-stepping this traditional setup is incredibly important for the financial community. It could help traders to avoid “hidden costs and centralization,” as well as serve as a potential solution to price manipulation and similarly flawed financial practices.

But the work is not done, yet. The article concluded by saying that the industry still has several challenges to overcome. For the most part, the mass adoption of decentralized blockchain technology in the financial sector is a nearly insurmountable obstacle to the overall success of the new tech as it continues on its path to development.

Derivatives Excitement
This announcement could not have come at a more momentous time in the blockchain and financial sectors. Earlier in September, Morgan Stanley excited the crypto markets when the Wall Street giant announced that it would begin offering a new system for Bitcoin derivative purchasing for institutional investors. But for the average retail investors, such a system is not yet in place. Apparently, Morgan Stanley is waiting until they see some interest from more institutional players before they officially launch the new platform for derivatives contracts.

The creation of a truly decentralized, P2P exchange could send shockwaves through the financial markets, disrupting a system that has been in place for hundreds of years. For some traders, the work being done by Level 01 could mean the end of shady practices, manipulation of stock prices, and hidden fees for transactions.

Overview

Level01 is the World’s 1st Peer to Peer (P2P) Derivatives Exchange with Artificial Intelligence (AI) Trade Matching Technology and Settlement on the Blockchain.

Generally, options are the easiest financial instruments to trade, while effectively encompassing all the asset classes. Options are agreements/contracts between two parties with an opposing exposure to the price of an underlying asset. The results (payoff) of the derivative contract are derived from the asset’s underlying price without actually physically buying or selling it, which may be prohibitive if the asset is highly priced. Options contracts have an expiry time, and when it is reached, the party that benefits from the right choice of exposure receives the predetermined proceeds (profit) from the other party.

Level01 allows users to trade options contracts directly with one another peer-to-peer (P2P) without the need for an intermediary broker; with a proprietary system that was designed to leverage blockchain, cryptocurrency and smart contracts technology for automation and transparency in market data, trade contract intent & matching, transactional history, and trade profit settlement.

For improved efficiency, peer-to-peer trade matching on the platform is assisted by a specially formulated algorithm ‘FairSense™’, which analyzes trade intent patterns of users on the platform and matchmakes or suggests them to counterparty users.

Level01 also introduces the concept of the ‘Ecosystem Exchange’ by integrating features that allow users to be rewarded when participating in the ecosystem. This encourages more users to join from the increased liquidity base, thus creating an ecosystem network effect which benefits everyone.

The primary objectives of the Level01 platform are:

*Simplicity and User Friendliness – By streamlining the capabilities of the platform to prevent information overload, Level01 intends to lower the barrier of entry and remove the complex/intimidating factor of online investing & trading for the layman/novice user.

More sophisticated tools for advanced users are carefully designed into the user experience to be unostentatious and unnecessary for completing trading tasks.

*Automated Transparency – The Level01 system is designed and strives for trustlessness and transparency; where the information data (such as time stamps and wallet addresses) of every interaction, transaction process and settlement of trade is publicly available for review and inspection on the blockchain. This ensures Level01 can perform its role as the ultimate trust intermediary satisfactorily.

*Ecosystem Orientated – With a focus towards decentralization, Level01 intends to cultivate growth of the largest peer-to-peer options trading network, where every user is recognized individually with proven statistics and ratings. Its ecosystem growth centric features allow users to add value to the network, and derive value from it for themselves.

API’s will also be built to allow users on other networks to access the core high value functionalities of the Level01 ecosystem.

PRODUCT

HOW TRADING WORKS

Level01’s mobile/web 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 option 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

Simple / Advanced Trading

Simple, effective trading experience with advanced features for experienced users.

Automated Blockchain Settlement

Automated, transparent trade settlement handled by blockchain smart contracts.

FairSenseTM Artificial Intelligence

AI analytics fair price discovery enabling better quality trade matching experience.

Transparent Market Data

Fully transparent market data verified by 3rd party oracle service providers.

Hotswap Capability Token Wallet

Instantly change platform native token to Bitcoin or Ethereum for more liquidity.

Instant Deposit / Withdrawals

Trader has full control over funds and deposits/withdrawals are done instantly.

Market Asset Variety

Trade both traditional & cryptocurrency market assets for more opportunities.

Trade Room Hosting

LVX token staking mechanism enables trade room hosting to earn commissions.

Platform Architecture

The Level01 Trading Platform is modularly designed into several distinct modules that enable ease of scalability, development updates, debugging and zero downtime maintenance. These are the off-chain server processes of the trading & exchange engine, and the on-chain transaction settlement LIST smart contract on the blockchain interacting with real-time and historical data feeds to form an efficient, transparent, hybrid platform.

All processes are load-balanced and are scalable without the need to interrupt the system in run-time. The Architecture is defined to support inter-server distribution to achieve minimum response time by allocating local servers in different regions in the future.

The Level01 Exchange Token (LVX)

Level01 is more than just a peer-to-peer trading exchange, it is designed to be a selfsustaining financial ecosystem where users whom contribute and participate in the ecosystem are rewarded.

The Level01 platform utilizes its own ERC20 tokens on the Ethereum blockchain as a medium of value exchange within its financial ecosystem. These tokens provide the means to transparent and fair settlement on the blockchain, because it can be handled/automated by smart contracts to be programmatically disbursed to trade winners as profits.

The tokens will be issued to participants of a token crowd-sale, and the total sales value of the crowd-sale shall determine the initial value per token.

Level01 recognizes the true value of the token crowd-sale manifests in its early contributors and diverse community, and thus makes every effort to ensure the token sales are distributed to many investors, rather than allowing the concentration of the platform tokens in the hands of single large investors or groups, also known as ‘whales’.

Potential token buyers are required to register with an email address and fill out an information form with accompanying identification documents before being able to purchase the tokens. Each individual will have a maximum cap on token purchase amount.

Level01 tokens will be issued with finite amount, with the total supply capped at 1,200,000,000 (1.2 Billion) tokens. The token will be assigned the symbol (LVX).

Token Purpose

A medium of exchange within a trading platform requires stable pricing with minimal/gradual fluctuation, which is the basis of an individual platform token instead of utilizing cryptocurrency assets such as Bitcoin or Ethereum, that are subject to extreme price volatility due to intense external factors and speculative trading.

Users on the Level01 platform derive profit from their endeavours, and contract pricing is an integral part of any trading strategy. A sudden drop or rise in the value of the trading token will severely affect the profit/loss of the users in the platform and destabilize the platform economics.

As technology is constantly evolving, Level01 also requires a token that can be future aligned with its platform development goals. For example: the Level01 platform has a token staking mechanism which incentivizes investors to stake tokens, thus reinforcing the price value of the LVX token. This sort of ecosystem feature would not be able to be integrated if the platform were to use another token, for example: Ethereum, which does not have a capped token limit. Thus an internal value token specific to the Level01 platform is necessary to provide astable environment for platform users to trade in.

TOKEN ALLOCATION

FUND ALLOCATION

FOR MORE INFORMATION,YOU CAN VISIT THESE SITES:

WEBSITE: https://level01.io/

WHITEPAPER:https://level01.io/wp-content/uploads/2018/06/level01_whitepaper_final1-2.pdf

TWITTER: https://twitter.com/level01io

FACEBOOK: https://fb.me/level01platform

LINKEDIN: https://linkedin.com/company/level01io

TELEGRAM: https://t.me/level01ico

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