Question About Chests

I know this is a newbie question, sorry, but I really need to know.

Are the contents of a chest (like an Istani Chest) determined by the level of character that opens it, or by the are the chest is found in, e.g. a chest near Champion's Dawn will have lower value contents than one near Beknur harbor.

Thanks for your insight!

The value of items from chests depends on the location - what "level" the chest is. (level is based on price of key required to open it)

It determines where it is located. For example, low-end chests drop a lot worse things than high-end chests.

It should also be noted that the type of loot received is dependent upon the group near the chest. For example, if you open a Canthan Chest next to a group of Naga, you will get Naga-themed drops.