{
    "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 Wheat 2x Daily Leveraged product is a fully collateralised Exchange Traded Commodity (ETC) that provides 2x leveraged exposure to the Bloomberg Wheat Sub Excess Return Index. It uses a synthetic replication method via fully funded collateralised swap agreements with swap counterparties, 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, mitigated by collateral held at a third party custodian, but still a complexity factor. The risk indicator is at the highest level 7/7, reflecting the high risk and complexity. The product is a debt security, not an equity fund, and involves derivative instruments inherently in its strategy, not just for risk management. The KIID and factsheet warn that the product is intended for informed investors with specific knowledge of leveraged and synthetic ETCs. The product also involves commodity futures roll costs and contango/backwardation effects, which add to the complexity of return profiles. There is no capital protection or principal guarantee. Costs include management fees and transaction costs related to the underlying swaps. All these factors combined meet the MiFID II criteria for classification as a complex financial instrument."
}