{
    "type": "ETC",
    "ucits": false,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Synthetic replication via fully collateralised swaps",
        "Counterparty risk",
        "Daily reset and compounding effects",
        "Commodity futures roll costs and contango effects"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Brent Crude Oil 2x Daily Leveraged product is a fully collateralised Exchange Traded Commodity (ETC) that provides 2x leveraged exposure to the Bloomberg Brent Crude Oil SL Excess Return Index. The product uses a synthetic replication method via fully funded swap agreements with swap counterparties, as explicitly stated in the factsheet and KIID. The ETC is not UCITS compliant. The product employs leverage with a 2x daily leverage factor, resetting daily, which introduces compounding effects and deviation from the underlying index over periods longer than one day. The product exposes investors to counterparty risk, as the issuer relies on swap counterparties and collateral arrangements to meet obligations. The risk indicator is at the highest level 7/7, reflecting the high risk and complexity. The product documentation warns that it is not simple and may be difficult to understand, requiring specific knowledge of leverage, daily rebalancing, and commodity futures roll risks such as contango and backwardation. The product is structured as a debt security, not a UCITS fund or ETF, and uses derivative instruments inherently in its strategy rather than for risk management. These factors combined meet MiFID II criteria for classification as a complex financial instrument."
}