Level FinanceMicro-cap

Level Finance receives a C+ risk grade (42/100) from Hindenrank, where lower scores indicate lower risk. 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.

The key risks identified for Level Finance are: (1) Already hacked for $1M in May 2023 through a referral reward bug. Smart contract vulnerabilities have been proven in production. (2) 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. (3) The LVL reward token trades at $0.01. Incentives for providing liquidity are essentially worthless, which could trigger a withdrawal spiral.

Level Finance scores 42/100 across eight risk dimensions: Mechanism Novelty: 2/15, Interaction Severity: 10/20, Oracle Surface: 3/10, Documentation Gaps: 3/10, Track Record: 12/15, Scale Exposure: 0/10, Regulatory Risk: 3/10, Vitality Risk: 9/10. The highest risk area is Vitality Risk at 9/10.

Among 53 rated Derivatives protocols on Hindenrank, Level Finance ranks #38 by safety (lowest risk score = safest). Its 42/100 risk score and C+ grade place it among the riskier Derivatives protocols.

Level Finance scores 12/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.