Low cancellation rate isn’t factored into the equation when it comes to levels. I have a 31% cancellation rate on my gig, because I cancel orders from people who do not read the information e.g. expecting 20 x 50 word articles for their money, reviews, or a million articles in three days. (some people agree that it will take longer, but cancel as soon as it goes very late anyway). I also cancel orders from people who I have expressely told never to order from me again. They have no issues hurling insults my way, finding out my phone number online and then calling me at 3am telling me to hurry up. However, they still want a good deal. Well, they can go some place else.
Mutual cancellations however are factored into your cancellation rating. That is a lie on Fiverr’s part. Mutual cancellations have the ability to stop you from achieving a higher level.
I lost my TRS due to too many mutual order cancellations. This resulted in fewer orders (because mutual cancellations can, apparently, have an impact on where you are in the searches). I found out one day that I no longer appeared in the search results. I did not return for over 2 weeks. By that time, I had lost my TRS as I was not making enough money for Fiverr (gone from 20 orders a day, to less than 10 a week)