{
    "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 Alphabet Daily ETP is a collateralised exchange traded product that seeks to replicate -3 times the daily performance of Alphabet 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. The product carries significant counterparty risk mitigated by collateral held at BNY Mellon, but this risk remains material. The risk indicator is at the highest level (7/7), indicating very high risk and complexity. The product is not UCITS compliant. The use of swaps, leverage, inverse exposure, and the complex daily compounding mechanism, combined with the collateralised swap structure, clearly mark this product as complex under MiFID II. The product is intended only for investors with specific knowledge and experience, further supporting the complexity classification. Costs include swap fees embedded in ongoing costs. The product documentation warns that it is 'not simple and may be difficult to understand' and that it 'may not be suitable for retail investors' without specific knowledge. These factors align with MiFID II complexity criteria."
}