{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Synthetic replication via swaps",
        "Daily reset and compounding effects",
        "Counterparty risk",
        "Debt security structure"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree S&P 500 3x Daily Leveraged product is a fully collateralised, UCITS eligible but not UCITS compliant Exchange Traded Product (ETP) that provides 3x leveraged exposure to the S&P 500 Net Total Return Index. The product uses a fully collateralised swap-based synthetic replication method, explicitly referencing swap agreements and collateral held with The Bank of New York Mellon. The product is structured as a debt security, not as an ETF, and involves counterparty risk from swap counterparties. The leverage factor is 3x with daily reset, leading to compounding effects and deviation from the underlying index performance over periods longer than one day. The risk indicator is at the highest level 7/7, indicating very high risk. The product documentation warns that it is intended for informed investors with specific knowledge of leverage and daily rebalancing, and that it may be difficult to understand. The product is not UCITS compliant, and the use of swaps, leverage, and the complex daily reset mechanism are key complexity drivers. There is no capital protection, and the product can lose the entire investment. The costs include management fees and transaction costs but no performance fees. The product is not suitable for retail investors without specific knowledge. These factors combined meet MiFID II criteria for classification as a complex financial instrument."
}