Liquidity providers deposit funds into Level Finance and receive trading fees from traders (supply-side fees).

Level Finance is a non-custodial exchange for spot and perpetual contracts built on BNB Chain. Level Finance was founded by an anonymous team and was launched in December 2022.

LVL tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

governance

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Derivative exchanges

Level Finance

# Level Finance Fees Methodology

## 1. Overview

Level Finance fees represents the total trading fees collected by the Level Finance protocol across its perpetual and spot trading products. This metric captures fee revenue generated from leveraged perpetual position trading (increases, decreases, liquidations) and spot token swaps. The calculation combines fees from both business lines, converts them to USD values, and aggregates them daily to provide a comprehensive view of the protocol's fee-generating activity.

## 2. Data sources

- **Perpetual trading events**: Parsed `IncreasePosition`, `DecreasePosition`, and `LiquidatePosition` events from Level Finance Pool contracts on BSC and Arbitrum networks
- **Spot trading events**: Parsed `Swap` events from Level Finance Pool contracts on BSC (v1) and Arbitrum (v2) deployments  
- **Token metadata**: Token registry containing symbols, decimal places, and contract addresses for fee tokens
- **End-of-day price feeds**: Daily USD price data for converting fee amounts from native tokens to USD values

## 3. Step-by-step calculation

### Component A: Perpetual trading fees
- **Purpose**: Captures fees from leveraged perpetual position trading activities
- **Logic**: Extracts fee data from position management events across BSC v1 and Arbitrum v2 deployments. Events include position increases (opening/adding to positions), decreases (closing/reducing positions), and liquidations (forced position closures). Each event contains a `feeValue` field representing the fee amount collected by the protocol. The raw fee values are normalized by dividing by 10^30 to convert from the contract's internal decimal representation to standard token amounts.
- **Key fields**: `feeValue` (raw fee amount), `indexToken` (token address for the position), `block_timestamp` (event timing), contract `address` (Pool contract)

### Component B: Spot trading fees  
- **Purpose**: Captures fees from regular token swap trading activities
- **Logic**: Extracts fee data from swap events across BSC v1 and Arbitrum v2 Pool contracts. Each swap event contains input and output token addresses and a fee amount. Token pair names are standardized by arranging symbols alphabetically (e.g., CAKE-USDT regardless of swap direction) and converting to uppercase. Raw fee amounts undergo decimal correction based on each token's decimal places from the token metadata registry, then convert to USD values using end-of-day price feeds matched by timestamp, token address, and chain.
- **Key fields**: `fee` (raw fee amount), `tokenIn` (input token address), `tokenOut` (output token address), `block_timestamp` (swap timing)

### Final aggregation
- **Combining components**: Perpetual and spot fees are combined through a union operation, creating a single dataset with standardized business line classifications ("Perpetual trading" vs "Spot trading")
- **Currency conversion**: Perpetual fees retain native token amounts while spot fees convert to USD using end-of-day price feeds matched by date, token, and chain
- **Time aggregation**: All fee events aggregate to daily boundaries using `timestamp_trunc` to day level, with a fill_zeros strategy to populate missing days with zero values
- **Final calculation**: The metric represents the daily sum of all trading fees collected by Level Finance, expressed as native token amounts for perpetual fees and USD amounts for spot fees, with proper business line and market sector categorization applied

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value users pay to use a protocol (gross fees, user-paid fees).

Level FinanceLVL

Fees

Fees

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