From the wording of the description, I am confused about one thing. It says fame, infamy, and level all affect luck, but it doesn't say how. There are three methods i can see, each with a justification. Any help as to which one is right, or if none of them are, would be appreciated.
1. Good is its own reward: Fame increases luck, infamy decreases it. Which only makes half sense. Divine favor does give what is effectively luck, but so does nocturnal and the thieves guild gives infamy. So gaining Nocturnal's favor in the thieves guild quests makes you less lucky, which is confusing. Fame = more luck, infamy - less, and level = more.
2. Devil's own Luck: Since Nocturnal is the Daedra which grants luck to the world through the Ebonmere portal in Skyrim, the infamous earn her gifts. Daring thieves, pulling off great heists with a calling card, are the way to her heart. Killing innocents, however also gives infamy and (probably) doesn't appease nocturnal (though it would other Daedra who might offer their favor, including the bid bad ironically). And good characters find themselves down on their luck, which is not fun for paladin types. In short Infamy = more luck, fame = less, and level = more. Also makes the grey foxes mask a extremely useful combat artifact, as infamy would be maxed and fame removed giving maximum potential luck.
3. Apathy is Death: The best of both worlds, righteous Aedra-blessed characters as lucky as are infamous thieves and Daedra-blessed killers. Neutral characters have luck based mostly on level. leaves room for the lucky incompetent hero whose heart is in the right place, warlocks who dead with Daedra, Divine champions blessed by the Aedra, and the experienced neutral smuggler who, while is equally famous and infamous, has survived long enough to make his own luck (AKA early Han Solo) The math is slightly more tricky on this one, and either relies on being able to square and get the square root of a number with scripts, or relies on if statements to perform multiplication based on value. I don't know if you can square root with scripts, but if you could it would be useful. generally speaking fame-infamy means more luck the farther from zero, plus a modifier from level. It also has no method of becoming less lucky than the beginning, but since you start out jailed without knowing why in the imperial prison you can't get much unluckier.
So, which is it if any? I have no idea, all have their merits and are lore-friendly so any help would be appreciated.