{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "complex_factors": [
        "Leverage",
        "Inverse exposure",
        "Synthetic replication via swaps",
        "Use of futures contracts",
        "Daily reset and compounding effects",
        "Counterparty risk"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Gilts 10Y 3x Daily Short is a fully collateralised Exchange Traded Product (ETP) that provides -3 times the daily performance of the Long Gilt Rolling Future Index, achieved through a fully collateralised swap structure. The product uses synthetic replication via swaps referencing gilt futures contracts, explicitly confirmed in the factsheet and KIID. The product is leveraged with a factor of -3x, providing inverse and amplified exposure to the underlying index. The leverage is reset daily, causing compounding effects that make returns over longer periods non-linear and potentially difficult to understand. The product is not UCITS compliant, which is consistent with the use of leverage and synthetic replication. The risk indicator is at the highest level (7/7), reflecting the high risk and complexity. The product documentation highlights significant counterparty risk due to reliance on swap counterparties, collateral management, and the possibility of loss of the entire investment. The recommended holding period is only one day, emphasizing the complexity and risk of holding longer. The product is described as not simple and difficult to understand, requiring specific knowledge and experience. There are no capital protection features. Costs include management fees and transaction costs related to the underlying swaps and futures. The product is structured as a debt security, not as shares, further indicating complexity. The PRIIPs KID also includes a comprehension warning stating the product is not simple and may be difficult to understand. All these factors combined meet the MiFID II criteria for classification as a complex financial instrument."
}