{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "complex_factors": [
        "Leverage",
        "Inverse Exposure",
        "Synthetic Replication via Swaps",
        "Futures Contracts",
        "Daily Reset and Compounding Effect",
        "Counterparty Risk"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Emerging Markets 3x Daily Short is a fully collateralised Exchange Traded Product (ETP) that provides -3 times daily leveraged short exposure to an index based on Emerging Markets futures contracts (Emerging Equities Rolling Futures Index). The product uses synthetic replication through swap agreements with collateral held at a custodian bank, exposing investors to counterparty risk. The leverage factor is -3x with daily reset, causing compounding effects that make returns over periods longer than one day non-linear and complex to understand. The product is not UCITS compliant despite being UCITS eligible. The risk indicator is at the highest level (7/7), reflecting the high risk and complexity. The product is described as not simple and difficult to understand, intended for informed investors with specific knowledge of leveraged and short products. The use of futures contracts, swaps, leverage, inverse exposure, and daily compounding effects, combined with counterparty and liquidity risks, all contribute to its classification as complex under MiFID II. The product is structured as a collateralised debt security (ETP), not an ETF, further indicating complexity. Costs include significant transaction costs (3%) reflecting active management of underlying futures and swaps. The product also carries risks related to rolling futures contracts (roll costs, contango effects) which add to complexity. The PRIIPs KID explicitly warns that the product is not simple and may be difficult to understand, reinforcing the complex classification."
}