Level 1 is for first-time gifters, and those only wishing to gift a few things. At level 1 you are expected to send gifts worth 25,000 hbs.
Level 2 is for the average participant and it is expected to send gifts worth 250,000 hbs. Most players will gift at level 2.
Level 3 is for those who want to go super over-the-top extravagant. The expected amount is 2.5 million hbs but most level 3 gifters give gifts many times more valuable than that. Level 3 is by invitation only.
You must complete each prior level to move up to the next one.