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.