{
    "type": "ETP",
    "ucits": false,
    "replication_method": "physical",
    "leverage": true,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Daily Compounding",
        "Margin Borrowing"
    ],
    "classification": "complex",
    "supporting_data": "The product is a 3x leveraged ETP that physically holds the underlying Ferrari NV stock and uses margin borrowing to achieve leverage. The replication method is physical, with no indication of synthetic replication or swap usage. The product explicitly uses leverage (3x) and daily rebalancing, which introduces compounding effects that can significantly alter returns over periods longer than one day. The risk indicator is at the highest level (7/7), reflecting the high risk and complexity of leveraged products. The product is not UCITS compliant and is described as suitable only for sophisticated investors who understand leverage and daily monitoring requirements. There is no capital protection, and the product may result in losses exceeding typical linear exposure due to leverage and compounding. No derivative instruments or swap agreements are used inherently in the strategy, but margin borrowing is employed to amplify exposure. The complexity arises primarily from the leverage factor, daily compounding effects, and the need for active monitoring, which can be difficult for retail investors to understand. The PRIIPs KID and factsheet confirm no swap or derivative usage, but margin borrowing and leverage are central. The product is classified as complex under MiFID II due to leverage and the nature of the product, despite physical replication and no direct derivative usage."
}