Is Level Finance Safe?
Risk Grade: C+ (42/100)
Level Finance is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Moderate risk — novel risk-tiered design undermined by a confirmed exploit, declining token value, and concentrated altcoin exposure in the Junior tier
A perpetual futures exchange on BNB Chain and Arbitrum that splits its liquidity pool into three risk tiers: safe (BTC/ETH), medium, and risky (altcoins). It holds $18M in deposits. Its C grade reflects a previous $1M hack, a reward token trading near zero, and the risk that the riskiest tier could be wiped out during an altcoin crash.
TVL
$778,000
Mechanisms
7
Interactions
5
Value Grade
D
Key Risks for Level Finance Users
Already hacked for $1M in May 2023 through a referral reward bug. Smart contract vulnerabilities have been proven in production.
The Junior tier holds altcoins that could drop 50%+ in a week. If that happens, Junior depositors absorb most of the losses while Senior tier stays relatively safe.
The LVL reward token trades at $0.01. Incentives for providing liquidity are essentially worthless, which could trigger a withdrawal spiral.
Top Risk Factors
- •Previous $1M exploit via referral reward bug in May 2023 demonstrates smart contract vulnerability history
- •Tranche-based liquidity creates complex risk layering where junior tranche holders bear disproportionate losses
- •Dual-token model (LVL/LGO) with declining LVL price raises sustainability concerns for incentive system
Risk Score Breakdown
Level Finance's highest risk area is Vitality Risk (9/10). Here's how each dimension contributes to the overall 42/100 score:
Read the Full Level Finance Risk Report
This protocol has 2 collapse scenarios. 3 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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