{
    "type": "ETP",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Synthetic replication via FX forwards",
        "Daily reset leverage with compounding effect",
        "Counterparty risk due to collateralised debt security structure",
        "Use of FX forward contracts",
        "High risk rating (7/7)",
        "Complex index (MSFXSM Triple Long Swiss Franc/Euro Total Return Index)"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Long CHF Short EUR 3x Daily product is a UCITS eligible Exchange Traded Product (ETP) that provides 3x leveraged exposure to the Swiss Franc relative to the Euro through FX forward contracts. The product uses synthetic replication via FX forwards, which are derivative instruments, and explicitly states the use of a collateralised debt security structure, implying counterparty exposure. The leverage factor is reset daily, causing a compounding effect that makes the product's return non-linear over periods longer than one day. The product carries the highest risk rating of 7 out of 7, indicating very high risk and complexity. 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. The product does not use physical replication but relies on derivatives (FX forwards) and collateral arrangements, which are complexity indicators under MiFID II. There is no capital protection, but the product is exposed to counterparty risk and complex leverage mechanics. The recommended holding period is only 1 day, reflecting the complexity and risk of the daily reset leverage. The product's costs include management fees and transaction costs related to the underlying derivatives. The product's structure, leverage, use of derivatives, and counterparty risk all drive the classification as complex under MiFID II."
}