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Level01 Derivatives Exchange ULTRA FAIR BLOCKCHAIN PEER 2 PEER AI ANALYTICS BLOCKCHAIN / ULTRA FAIR / PEER 2 PEER / AI ANALYTICS TM LEVEL O1 TECHNOLOGIES | WWW.LEVEL01.IO

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Page 1: Level01 Derivatives Exchange BLOCKCHAIN BLOCKCHAIN / … · The platform intends to effectively removes all forms of friction in the user experience present in conventional ... better

Level01 Derivatives ExchangeULTRA FAIRBLOCKCHAIN PEER 2 PEER AI ANALYTICSBLOCKCHAIN / ULTRA FAIR / PEER 2 PEER / AI ANALYTICS

TM

LEVEL O1 TECHNOLOGIES | WWW.LEVEL01.IO

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AI ANALYTICS

P2P EXCHANGE

BLOCKCHAIN

© Level 01 Technologies 1

ABOUTABOUTWHAT IS LEVEL01?WHAT IS LEVEL01?

Level01 is a peer to peer (P2P) derivatives exchange that allows investors to trade options contracts directly withone another, without requiring an intermediary or broker.

Level01 combines Distributed Ledger (DLT) Technology for transparent and automated trade settlement on theblockchain, with Artificial Intelligence (AI) analytics thatprovides fair value pricing dynamically to counterpartiesin a trade, based on current & retrospective market data.

The platform intends to effectively removes all forms offriction 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.

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ANALYSISANALYSISP2P vs BROKER EXCHANGEP2P 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 involvedto 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 investorsand their funds susceptible to other types of riskand exposure such as exorbitant transaction fees,withdrawal delays, market manipulation, brokerstrading 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.

© Level 01 Technologies 2

BROKER P2P LEVEL01LEVEL01LEVEL01ISSUE

YESYES

YESYES

YESYES

NONO

HIGHHIGH

NONO

NONO

NONO

YESYES

YESYES

HIGHHIGH

NONO

HIGHHIGH

YESYES

YESYES

YESYES

NONO

MIDMID

YESYES

YESYES

YESYES

NONO

NONO

MIDMID

YESYES

MIDMID

NONO

NONO

NONO

YESYES

LOWLOW

NONO

YESYES

NONO

NONO

NONO

HIGHHIGH

YESYES

LOWLOW

Potential Conflict of Interest

Counterparty Performance Risk

Privacy Information Risk

Instant Profit Withdrawals

Transparent Transaction Cost

Transaction Fees

Trust Required for Transaction

Possible Market Manipulation

Transparent Trade Settlements

Hack Consequence Severity

Funds held in Exchange Wallet

Access to Client Account

Counterparty Liquidity

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PRODUCTPRODUCTHOW TRADING WORKSHOW TRADING WORKS

Level01’s mobile/web app enables investorsto 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.

Investors select asset category they are interested in, such as FOREX or CRYPTOCURRENCY, and selects assetmarket to trade in, such as USD/EUR or ETHEREUM.

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.

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 permissionfrom both parties to handle token funds and performs trade settlement upon option contract maturity (expiry).

3

2

1A pull up, sortable list of all livecontracts in the current assetmarket. Contract list can be sorted by EXPIRY, STRIKE PRICE& POSITION, and TOTAL VALUEof the contracts in ascending ordescending order.

CONTRACT LIST

© Level 01 Technologies 3

01:1099%

STRIKEEXPIRY TOTAL VALUE

1055.550010000

(+233.34%)01:07:56

1055.550000:52:56

02:30 PM

02:15 PM

3000 / 7000ODDS 34%

GAINCOST

TODAY

TODAY 9000

(+42.90%)6300 / 2700

ODDS 70%GAINCOST

CREATE CONTRACT

ETHEREUMCRYPTO

9780.709600.00

A/BAL

T/LINE

02:00 PM 02:30 PM 03:00 PM01:30 PM01:00 PM12:30 PM12:00 PMPM

1056.0000

1055.5000

1055.0000

1056.5000

1057.0000

1057.5000

1058.0000

1057.1298

An options contract that has beencreated/issued into the market.Has prefixed EXPIRY, STRIKE& POSITION, and contract TOTALVALUE as set by contract issuer.Final investment amount that iscommitted to blockchain isdetermined when a counterpartymatches with a contract, andthe dynamic fair value pricing islocked in for both parties.

OPTIONS CONTRACT

Indicates total value of contract,with COST of contract and itspotential profit GAIN calculatedwith AI analytics algorithms thatupdate dynamically tick by tickaccording to live market data.

CONTRACT VALUE

Pull down view for category andmarket asset selection. containsquick view information of assetssuch as daily % change, highestand lowest value of assets.Save to favourites list for quickaccess to often traded assets.

ASSET SELECTION

Shows available balance of LVXtokens within current main wallet.A/BAL value is retrieved directlyfrom the blockchain. Also showstrading line (T/LINE) value, thatindicates the amount of tokenallowance that the investor has granted permission to the systemto be used for trading activities.

TOKEN WALLET

Opens view that shows all issuedor matched contracts, and currentstatus of each contract such asmatched: ongoing, settled, expired, cancelled etc. and contract value.

PORTFOLIO

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PRODUCTPRODUCTKEY FEATURESKEY FEATURES

Simple / Advanced TradingSimple, effective trading experience withadvanced features for experienced users.

abc

E=mc2

Automated Blockchain SettlementAutomated, transparent trade settlementhandled by blockchain smart contracts.

FairSenseTM Artificial IntelligenceAI analytics fair price discovery enabling better quality trade matching experience.

Transparent Market DataFully transparent market data verified by3rd party oracle service providers.

Hotswap Capability Token WalletInstantly change platform native tokento Bitcoin or Ethereum for more liquidity.

Instant Deposit / WithdrawalsTrader has full control over funds anddeposits/withdrawals are done instantly.

Market Asset VarietyTrade both traditional & cryptocurrencymarket assets for more opportunities.

Trade Room HostingLVX token staking mechanism enablestrade room hosting to earn commissions.

© Level 01 Technologies 4

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TECHNOLOGYTECHNOLOGYBLOCKCHAINBLOCKCHAIN

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 forperforming, 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 processesthat will take place for every event.

SCW W

O

PW

T T

CC

T

Diagram: Traders issue options contracts (C) into Level01 to be matched by other traders. Traders authorize wallets (W) to send tokens (T) to Smart Contract (SC). SC streams live data from oracle (O) and determines winning party upon option contract maturity. SC distributes profit to winning trader and platform wallet (PW) fees.

© Level 01 Technologies 5

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TECHNOLOGYTECHNOLOGYFAIRSENSE TMFAIRSENSE TM

FairSenseTM 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.

FairSenseTM automatically assists investors to assess fair values of contracts they seek to trade and continuously update their bid or offer price relative to the FairSenseTM implied value thus offering fair value pricing to both sides of a trade, that is accurately adjusted every second (tickby tick) to current live market conditions.

FairSenseTM algorithms observe and sequence realtime, cross-market variables in the most liquid financial markets,which provide the most consistent market prices thusallowing investors to trade consistently with other assets globally, providing improved liquidity and price discovery on Level01’s peer-to-peer exchange.

05

04

03

02

06

07

08

01

10

09

2990/7010

3010/6990

2993/7007

3005/6995

2995/7005

3003/6997

2996/7004

3002/6998

2998/70023001/69993000/7000 current_sec

© Level 01 Technologies 6

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TOKENTOKENLVX TOKENLVX TOKEN

The Level01 Exchange (LVX) token is an ERC23token on the Ethereum blockchain, and functionsas 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 hosttrading rooms where group trading events are held, and investors earn traderoom hosting commissions.The staked tokens are reimbursed by the smartcontract after a staking duration.

7

STORE OF VALUE

The LVX token provides use as a store of value andblockchain asset within the Level01 financial ecosystem.

MEDIUM OF EXCHANGE

The LVX token facilitates transactions between investorsas a standard operating exchange medium within Level01.

INCENTIVIZED STAKING

Integrated token staking functionality promotes variationin user base participation and ecosystem network effect.

LIMITED SUPPLY

Predetermined fixed supply token promotes appreciationand increased demand from scarcity as user base grows.

The token’s digital nature allows transparent & trustless interoperability with blockchain for automated settlement.

AUTOMATION

© Level 01 Technologies

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TEAMTEAM

Evgeni Pirianov - Blockchain Consultant DeveloperExperienced developer for various core blockchainbased projects including OTC-interest rates swap trading platform and digital ledger based recruitmentwith document verification platform. Certified Solidity Smart Contract developer. MSc degree at ImperialCollege London with full distinction.

Naglis Vysniauskas - Head Quant DeveloperQuantitative finance guru with extensive ex-perience in derivatives pricing, risk & trading.Helped oversee over $25B AUM and designed,implemented and managed one of the mostadvanced pension hedging & absolute return solution at UK’s largest asset management Co.

Renata Azarinskaite - Business DevelopmentSenior consultant with over 15yrs in finance & banking industry. Specialist in commercial &investment banking including investment analysis, portfolio management, due diligence & under writing distribution for IPO’s. Experience in capital markets & investment management analytics.

Donatas Vadopalas - Quantitative AnalystMathematician & data analyst focused on R&D inthe financial services industry. Developed some ofthe most sophisticated credit risk modelling algo-rithms for banks in Latin America. Experience withresearching & implementing business & financialanalytics solutions. AI and neural networks tinkerer.

© Level 01 Technologies 8

Jonathan Loi - Founder, CEOFounder and director of public listed technology company in Australia, and inventor of its patented core technology. Experience growing a companyfrom startup to public offering. Extensive know-ledge in mobile hard/software product design andUI/UX technologies. Involved in machine learning.

Mohammad Dabiri - Chief Systems ArchitectProfessional software engineer & system architect.Experienced designing impactful high performancesolutions. MSc Science & Computer Engineering.Led several worldwide projects successfully to pro-duction in various industries: finance, ERP & trading.Key backend system architect of Level01 platform.

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ADVISORSADVISORS

Michael Go - Asia Pacific Head of Trading Markets, Thomson ReutersMichael 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 nccessary to facilitate the development of the innovative, world-class Level01 platform.

Itai Damti - Co Founder, Leverate / CEO, AntifragileItai Damti is the Co-Founder of Leverate, an industry leader in technology for online forex brokers, with over 100B USD in monthlytrading voulme. 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 wordwidesuch as Barclays Techstars (Tel Aviv) and HAX (China) provides Level01 with the guidance to navigate in uncertain situations.