{
    "type": "ETP",
    "ucits": true,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Daily Reset Leverage",
        "Compounding Effect",
        "Futures Rolling",
        "Collateralised Debt Security",
        "High Risk Level 7"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree FTSE MIB 3x Daily Leveraged product is a UCITS eligible Exchange Traded Product (ETP) that provides 3x leveraged exposure to the FTSE MIB index through a fully collateralised structure. The product tracks a leveraged index (FTSE MIB Super Leveraged RT Net-of-Tax Lux TR Index) which applies a daily reset leverage factor of 3x, leading to a compounding effect that causes returns over periods longer than one day to deviate from a simple 3x multiple of the underlying index. The product is described as a certificated, registered, collateralised debt security, indicating synthetic exposure rather than physical replication. The KIID explicitly states the product is not simple and may be difficult to understand, intended for informed investors with specific knowledge or experience. The risk indicator is at the highest level 7 out of 7, reflecting very high risk and complexity. The product uses futures contracts and rolling of futures, which introduces complexity such as roll costs and contango/backwardation effects. There is no direct mention of swap agreements or total return swaps, so 'swaps' is marked false, but the use of derivatives (futures) for synthetic leveraged exposure is confirmed. The product does not have inverse exposure but is leveraged 3x long. The costs include management fees and transaction costs related to maintaining the leveraged exposure. The product is not capital protected and carries significant counterparty and market risks. These factors combined\u2014leveraged daily reset, synthetic exposure via derivatives, collateralised debt security structure, and high risk rating\u2014drive the classification as complex under MiFID II."
}