Correct.

Levels gained from granted levels count towards levels granted.
IE, levels cascade.

But because you can only grant levels to a toon who is lower then your level.
You need to level 2 toons per link in the chain, to get full benefit.



RAF Set Up:
A (Booster) -- B -- C
A (Booster) -- D -- E

A to B to C = 2 links.
A to D to E = 2 links.
Will need to boost 4 toons, to get the full benefit from the cascading levels.

If you boost 4 toons on BCDE with A.
You end up with:

B x4 (From Boosting)
C x4 (From Boosting)
D x4 (From Boosting)
E x4 (From Boosting)

And:
A x4 (x2 Granted from B, x2 Granted from D)
B x2 (x2 Granted from C)
D x2 (x2 Granted from E)

And:
A x1 (x1 from B, based on the levels B received from C's granted levels)
A x1 (x1 from D, based on the levels D received from E's granted levels)

Total:
A 6x Level 60's
B 6x Level 60's
C 4x Level 60's
D 6x Level 60's
E 4x Level 60's