{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "complex_factors": [
        "Inverse exposure",
        "Synthetic replication via swaps",
        "Daily leverage and compounding effects",
        "Counterparty risk",
        "Collateralised debt security structure"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree FTSE 250 1x Daily Short is an Exchange Traded Product (ETP) that provides inverse (-1x) daily exposure to the FTSE 250 Index. It is structured as a fully collateralised, UCITS eligible debt security but is explicitly not a UCITS fund itself. The product achieves its investment objective through a fully collateralised swap structure, confirmed by multiple references to 'swap agreements', 'swap counterparties', and 'collateral held' in segregated accounts. The replication method is synthetic, not physical, relying on total return swaps to deliver inverse exposure. The product uses daily leverage with a leverage factor of -1x and resets daily, causing compounding effects that make returns over periods longer than one day deviate from a simple inverse multiple of the index. The risk indicator is at the highest level (7/7), reflecting the high risk and complexity. The product is described as 'not simple and may be difficult to understand' and is intended for informed investors with specific knowledge of leveraged and short products. There is significant counterparty risk due to reliance on swap counterparties, mitigated by collateral but still present. The product is a collateralised debt security, not an ETF, and involves complex features such as daily reset leverage, synthetic replication, and inverse exposure. These factors combined meet MiFID II criteria for classification as a complex financial instrument."
}