{
    "type": "ETP",
    "ucits": false,
    "replication_method": "physical",
    "leverage": true,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Daily Rebalancing",
        "Compounding Effect"
    ],
    "classification": "complex",
    "supporting_data": "The product is a Collateralised Exchange Traded Security (ETP) designed to provide 3x the daily return of the ARK Innovation ETF through physical ownership of the underlying ETF shares combined with margin borrowing. The replication method is physical, with no indication of synthetic replication or swap usage. However, the product uses leverage (3x exposure) achieved by borrowing (margin) to amplify returns, which is a key complexity trigger under MiFID II. The product explicitly warns about the compounding effect due to daily rebalancing, which can cause returns over periods longer than one day to deviate significantly from 3x the underlying ETF's performance. The risk indicator is at the highest level (7/7), reflecting the high risk and complexity of leveraged products. There is no capital protection, and the product is intended for sophisticated investors able to monitor their positions daily. No derivative instruments or swap agreements are used inherently in the strategy, but leverage and daily rebalancing introduce complexity. The product is not UCITS compliant. The complexity arises primarily from the leverage factor, daily rebalancing, and the compounding effect, which can be difficult for retail investors to understand and manage. The absence of synthetic replication or swaps means derivative exposure is minimal and used only for risk management if at all, so derivatives are marked false. The product is classified as complex due to leverage and the structural features of the ETP, despite physical replication and no swap usage."
}