{
    "type": "ETC",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Synthetic replication via fully funded collateralised swaps",
        "Counterparty risk",
        "Daily reset and compounding effects",
        "Commodity futures roll costs and contango effects"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Silver 2x Daily Leveraged product is a fully collateralised Exchange Traded Commodity (ETC) that provides 2x leveraged exposure to the Bloomberg Silver Sub Excess Return Index. It uses a synthetic replication method via fully funded collateralised swap agreements with large financial institutions, as explicitly stated in the factsheet and KIID. The product is not UCITS compliant. The leverage factor of 2x daily exposure, with daily reset and compounding effects, introduces complexity in understanding returns over periods longer than one day. The product carries significant counterparty risk due to reliance on swap counterparties, mitigated by collateral held at a custodian but still a complexity factor. The underlying index tracks silver futures contracts which are rolled daily, exposing investors to roll costs, contango, and backwardation effects, further complicating performance expectations. The risk indicator is at the highest level 7/7, and the product is intended only for informed investors with specific knowledge of leveraged and synthetic ETCs. There are no capital protection features, but the product\u2019s structure and leverage, combined with synthetic replication and derivative use, clearly classify it as complex under MiFID II. The PRIIPs KID also includes a comprehension warning and highlights the need for daily monitoring and understanding of leverage and compounding risks, reinforcing the complexity classification."
}