{
    "type": "ETC",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Synthetic replication via fully collateralised swaps",
        "Daily reset and compounding effects",
        "Counterparty risk",
        "Commodity futures rolling (contango/backwardation effects)"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Coffee 3x Daily Leveraged product is a fully collateralised Exchange Traded Commodity (ETC) that provides 3x leveraged exposure to the Bloomberg Coffee Sub Excess Return Index. It uses a synthetic replication method via fully funded swap agreements with collateral held at a third party custodian. The product explicitly states the use of swaps and collateralised debt security structure, confirming derivative usage as an inherent part of the investment strategy. The leverage factor is 3x with daily reset, causing compounding effects that make returns non-linear over periods longer than one day. The product carries a highest risk rating of 7/7, indicating very high risk. The KIID and factsheet highlight significant counterparty risk, liquidity risk, and the complexity of rolling futures contracts (with contango and backwardation effects) impacting performance. It is not UCITS compliant and is intended for informed investors with specific knowledge of leveraged and synthetic ETCs. These factors combined meet MiFID II criteria for a complex financial instrument."
}