{
    "type": "ETP",
    "ucits": true,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Synthetic replication",
        "Swap agreements",
        "Daily reset leverage compounding",
        "Collateralised debt security",
        "Complex FX forward contracts",
        "High risk rating (7/7)"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Long USD Short EUR 3x Daily product is a UCITS eligible Exchange Traded Product (ETP) that provides 3x leveraged exposure to USD relative to EUR through synthetic replication using FX forward contracts. The product is described as a collateralised debt security governed by Jersey law, indicating it is not a traditional ETF but an ETP with embedded credit and counterparty risk. The investment objective explicitly states the use of FX forward contracts and a triple leverage factor reset daily, which introduces compounding effects and tracking deviations over periods longer than one day. The KIID warns that the product is 'not simple and may be difficult to understand' and is intended for informed investors with specific knowledge, highlighting complexity. The risk indicator is at the highest level 7/7, reflecting very high risk including currency risk, leverage risk, and counterparty risk. The product uses synthetic replication via derivatives (FX forwards), with collateralisation and swap agreements implied by the description of the product as a collateralised debt security. The daily reset leverage and compounding effects further increase complexity. There is no capital protection, but the product carries significant counterparty exposure and liquidity considerations. Costs include management fees and transaction costs related to underlying derivative trading. The PRIIPs KID and the product factsheet confirm the use of derivatives and synthetic replication, with no physical underlying securities. These factors combined meet MiFID II criteria for classification as a complex financial instrument."
}