{
    "type": "ETP",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via FX forward contracts",
        "Use of collateralised debt security structure",
        "Counterparty risk inherent in swap agreements",
        "Rolling of forward contracts with potential contango/backwardation effects"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Long CHF Short EUR product is a UCITS eligible Exchange Traded Product (ETP) that provides exposure to the Swiss Franc relative to the Euro by tracking a total return index based on FX forward contracts. The product is described as a fully collateralised, Jersey law governed, registered collateralised debt security, indicating synthetic replication rather than physical ownership of underlying assets. The investment objective relies on daily performance of FX forward contracts, which are derivative instruments, and the product explicitly references the impact of rolling these contracts, implying complexity due to contango or backwardation effects. The KIID warns that the product is 'not simple and may be difficult to understand' and is intended for investors with specific knowledge or experience in similar products. The risk indicator is moderate (3/7), but the product carries counterparty risk due to its structure as a collateralised debt security and use of derivatives. There is no leverage or inverse exposure, but the synthetic replication via derivatives and swap-like instruments, combined with collateralisation and counterparty risk, triggers MiFID II complexity classification. The PRIIPs KID and factsheet confirm the use of FX forwards and collateralised debt security structure, reinforcing the synthetic nature and complexity. Therefore, despite a moderate risk rating and no leverage, the product is classified as complex under MiFID II due to its synthetic replication, derivative use, and counterparty risk exposure."
}