Functional levels, also known as K-levels, were developed in Germany in 1991 to objectively define prosthetic need and prescribe appropriate prosthetic components. They classify amputees based on their expected functional ability into levels 0 to 4. Level 0 amputees are non-ambulatory and benefit most from a wheelchair. Higher levels indicate greater mobility and need for more advanced prosthetic components, with level 4 amputees being highly active individuals who require components like computer-controlled knees. The functional levels help prosthetists identify the most suitable prosthetic configuration for each amputee.