Level01 For Decentralized Derivatives Trading

Level01 aims to take advantage of the growing market of cryptocurrency, the advantage of blockchain technologies, and the need for an advanced financial trading. Blockchain technology or also known as Distributed Ledger Technology or DLT is a public ledger that is secured, verifiable, and is decentralized. Most Blockchain technology is even more popular with smart contracts working with it which functions as a program that manages agreements of parties in a transaction to avoid things that may complicate the transactions. At the same time, the decentralized nature of cryptocurrency makes it acceptable as a digital asset for cross-border transactions. With the Blockchain Technology and the utilization of cryptocurrency, it can bring about a new way of financial trading.

Financial trading is an attempt to make a profit via buying and selling of financial instruments. Financial instruments come in many forms and different risk, there are bonds, commodities, stocks, mutual funds, shares, and derivatives, to name a few. A derivative is a type of contract where the parties involved have its value based on what is commonly called 'underlying'. Underlying are underlying assets such as currencies, market indexes, bonds, et cetera. This type of contract that relies on the performance of an underlying entity or asset subjects traders to both risk and profit. Derivatives are not readily accessible to retail investors, an option, a type of derivatives contract, are one of it which is not directly accessible. If retail users want to trade options they need to go through brokers to access the OTC market or the large exchanges where it is traded. This segregation or barrier to retail investors is an important issue Level01 aims to solve, aiming to make derivatives (options) accessible to retail users in a P2P basis and without a need for broker or brokerage firms.

What exactly is an option that Level01 aims to make it accessible and simple? Option, a type of derivatives, is a contract that grants traders the right to buy and sell an asset at a strike price on a certain period or date. To simply put, the value of the underlying asset serves as the basis for whether a trader gained or loss profit. The value of an option is set at a strike price and at its maturity, the strike price could be lower, higher, or the same as the asset price. The buyer gains profit if the option's strike price is lower than the current market price of the underlying asset while the seller gains profit if it's the opposite. This is a simple way to look at it but there is more in option depending if it's a Call Option or a Put Option which would need a more in-depth explanation.

The Level01 process of options trading goes this way: Traders will create option contracts and will send it to the pool of trading intents in Level01. In this pool, it will be curated to relevantly display it to other users based on their interest. These users who are interested can see the matching price for the options as well as the expiry date, notional value, and strike price and position. If a trader accepts the matching price and the parameters, it will result in a trade match and through LIST or Level01 Intent Sealed Transaction, the smart contract protocol, it will store and record the parameters and events in the contract, and verifies that the traders' wallet contains the sufficient balance for the trade match. Once the trade winner is determined, the LIST will give the profit to the winner.

The Level01 token to be used in the P2P trading exchange is the LVX. LVX is believed to be not extremely subjected to price volatility which could be a better token for trading. The following LVX token sale details are as follows:

Token: LVX

Price: $0.140

Token Supply: 1.2 Billion LVX

Platform: Ethereum

Hard Cap: $75M

Soft Cap: $15M

To know more about the technical details and aspects of the project plus their latest updates, visit their official social media pages and website:

Bitcointalk Announcement Thread: https://bitcointalk.org/index.php?topic=4499211

Website: https://level01.io/

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

Telegram: https://t.me/level01ico

Facebook: https://www.facebook.com/level01platform