{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "complex_factors": [
        "3x leverage",
        "Inverse exposure",
        "Synthetic replication via funded swap",
        "Counterparty risk",
        "Daily reset compounding effect",
        "High risk rating (7/7)",
        "Collateralised swap structure"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Short Glencore Daily ETP is an exchange traded product (ETP) that seeks to replicate -3 times the daily performance of Glencore plc through a synthetic replication method using a funded swap agreement with Natixis as the swap provider. The product explicitly uses leverage (3x) and inverse exposure, with daily reset of leverage causing compounding effects that can significantly deviate returns over periods longer than one day. The product is collateralised but exposes investors to counterparty risk, as the swap provider's payment obligations are secured by collateral held in a segregated account. The risk indicator is at the highest level (7/7), reflecting the very high risk and complexity. The product is not UCITS compliant. The KIID and PRIIPs documents emphasize that the product is not simple, requires specific investor knowledge, and may be difficult to understand. The use of a funded swap, leverage, inverse exposure, and the daily compounding effect are all complexity drivers under MiFID II. There is no capital protection, and the product can result in total loss of capital. These factors combined classify the product as complex under MiFID II rules."
}