{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication via collateralised exchange traded securities",
        "Use of swaps and derivative instruments",
        "Leverage inherent in product structure",
        "No capital protection",
        "Counterparty risk exposure",
        "Complex underlying Shariah-compliant index",
        "Long maturity with early redemption and mandatory redemption events",
        "Comprehension warning implied by issuer's statement product is 'not simple and may be difficult to understand'"
    ],
    "classification": "complex",
    "supporting_data": "The Wahed FTSE USA Shariah ETP is a collateralised exchange traded security (ETP) that synthetically replicates the FTSE Shariah USA Index using derivative instruments, including swaps, as indicated by the product type and collateralised structure. The product documentation explicitly states it is 'not simple and may be difficult to understand,' which aligns with MiFID II complexity indicators. The product involves leverage, as it is issued by Leverage Shares plc, and the term 'Leverage Shares' implies leveraged exposure. The risk indicator is medium (4/7), but the product carries counterparty risk due to collateralisation and swap usage. There is no capital protection, and investors may lose all invested capital. The product has a long scheduled maturity (until 2072) with possible early redemption events, adding complexity. The underlying index is Shariah-compliant, which may involve complex screening and selection criteria, further complicating the product. Costs include transaction costs related to buying and selling underlying investments, and the product is not UCITS compliant. The PRIIPs KID and product factsheet confirm the use of swaps and derivative instruments for synthetic replication and leverage. These factors combined meet MiFID II criteria for classification as a complex financial instrument."
}