{
    "type": "ETP",
    "ucits": false,
    "replication_method": "physical",
    "leverage": true,
    "derivatives": false,
    "swaps": false,
    "inverse": true,
    "complex_factors": [
        "Leverage",
        "Inverse Exposure",
        "Daily Compounding and Rebalancing",
        "High Risk Level 7",
        "Short Investment Horizon",
        "Potential for Significant Losses",
        "Complex Index (iSTOXX Inverse Leveraged -3x RACE Index)"
    ],
    "classification": "complex",
    "supporting_data": "The product is a Collateralised Exchange Traded Security (ETP) designed to provide -3 times the daily return of the Ferrari NV ADR equity security, tracking the iSTOXX Inverse Leveraged -3x RACE Index. The replication method is physical, with full ownership of underlying assets (short positions in Ferrari NV stock) held in a margin account. There is no use of synthetic replication or swap agreements. However, the product employs significant leverage (-3x) and inverse exposure, with daily rebalancing and compounding effects that can cause returns over periods longer than one day to deviate substantially from the simple leveraged multiple of the underlying asset's return. The risk indicator is at the highest level (7/7), indicating very high risk and complexity. The product is intended for sophisticated investors with a very short holding period (recommended 1 day) and requires active monitoring. The product is not UCITS compliant and is classified as an ETP (not an ETF). There are no capital protection features, and investors can lose their entire investment. The complexity arises primarily from the leverage, inverse exposure, daily compounding, and the nature of the underlying index, which is a leveraged inverse index. No derivatives or swaps are used inherently in the strategy, but the leverage and inverse exposure alone trigger the complex classification under MiFID II. The PRIIPs KID and factsheet confirm no swap usage and physical replication, but the leverage and inverse nature, combined with the high risk and short-term holding requirements, make this product complex. The product also carries warnings about the difficulty of understanding the compounding effects and the risks of holding beyond one day."
}