{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "complex_factors": [
        "Leverage",
        "Synthetic replication via funded swaps",
        "Inverse exposure",
        "Daily reset and compounding effects",
        "Counterparty risk",
        "Complex underlying index (Bund Rolling Future Index with futures rolling)",
        "Debt security structure (not UCITS)",
        "Collateralised swap exposure"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Bund 10Y 5x Daily Short is an Exchange Traded Product (ETP) that provides -5 times daily leveraged short exposure to the Bund Rolling Future Index, which tracks front-month Euro-Bund futures contracts. The product uses a fully collateralised swap structure (synthetic replication) to achieve its investment objective, explicitly referencing swap counterparties and collateral management. The leverage factor of -5x and daily reset with compounding effects introduce significant complexity and risk. The product is structured as a debt security, not a UCITS fund, and carries a highest risk rating of 7/7. The KIID and factsheet highlight counterparty risk, liquidity risk, and the need for investors to have specific knowledge and experience, indicating complexity. The use of futures rolling in the underlying index adds further complexity due to roll costs and potential tracking error. The product is intended for sophisticated investors with short-term horizons and is not suitable for retail investors lacking specific knowledge. These factors combined meet MiFID II criteria for classification as a complex financial instrument."
}