{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": true,
    "inverse": true,
    "complex_factors": [
        "3x Leverage",
        "Inverse Exposure",
        "Synthetic Replication via Funded Swap",
        "Counterparty Risk",
        "Daily Reset and Compounding Effects"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Short BP Daily ETP is a collateralised exchange traded product that seeks to replicate -3 times the daily performance of BP p.l.c. shares through a synthetic replication method using a funded swap agreement with Natixis as the swap counterparty. The product explicitly uses leverage (3x) and inverse exposure (-3x), with daily reset and compounding effects that cause returns over periods longer than one day to deviate significantly from the underlying asset's performance multiplied by leverage. The product carries a high risk rating of 7/7, indicating very high risk and complexity. The swap is collateralised but introduces counterparty risk, and the product is not UCITS compliant. The KIID and factsheet highlight the need for specific investor knowledge and experience, and warn that the product is not simple and may be difficult to understand. Costs include swap fees embedded in ongoing costs. The product\u2019s structure, leverage, synthetic replication, and counterparty exposure all meet MiFID II criteria for classification as a complex financial instrument."
}