There is no system to balance teams once the match has started, it's all done in the last 5 seconds of the lobby countdown.
I'm fairly sure it doesn't factor in levels or statistics (k/D, total kills, etc) because when a true monster of a player logs on (say...4GEN7), the game seems to randomly chuck him in the same team as 2 other monsters and you end up with a match that ends 75-20 or something terrible like that.
As far as I know, currently the game tries to balance from the previous match results (i.e. the most recent match that finished). Say, if two players did extremely well and were on the same team, then there's almost a guaranteed chance they will find themselves in the opposite teams next round.
Also if people leave in the last 5 seconds of the countdown (as I've often seen) then the game desperately tries to fix things by...I have no idea what it does actually, it seems to throw people around randomly.
You have to remember that Crytek has little or no experience with multiplayer, there are literally a hundred other "newbie mistakes" that they made with C2 MP. Since you're only level 10 you'll only be scratching the surface of how fun AND broken this game is at the same time.
Sadly instead of fixing stuff, Crytek tried to pretend they never made this game along with pretending the community didn't exist, it continues to this day.
Mid-2011 was the last time Crytek paid any attention to this game or the forums/community (other than the occasional random ban of legit, hard-working players)...it's been total silence after that.