{
    "type": "ETC",
    "ucits": false,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Synthetic replication",
        "Collateralised swap structure",
        "Daily reset and compounding effects",
        "Counterparty risk"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Copper 2x Daily Leveraged product is an Exchange Traded Commodity (ETC) that provides 2x leveraged exposure to the Bloomberg Copper Sub Excess Return Index via a fully collateralised swap structure. The replication method is synthetic, using fully funded collateralised swaps with daily reset leverage, which introduces complexity through compounding effects and leverage amplification. The product is not UCITS compliant and is structured as a debt security, not an equity fund. The KIID and PRIIPs KID explicitly mention the use of swaps, counterparty risk, collateral management, and the need for investors to have specific knowledge of leveraged products. The risk indicator is at the highest level (7/7), reflecting the high risk and complexity. The product\u2019s performance can deviate significantly from the underlying index over periods longer than one day due to daily leverage reset and compounding. The product also carries liquidity and credit risks related to the swap counterparties. Costs include management fees and transaction costs related to the underlying swap and futures rolling. The product is intended for informed investors with short-term horizons, further indicating complexity. These factors combined meet MiFID II criteria for classification as a complex financial instrument."
}