{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": true,
    "complex_factors": [
        "Synthetic replication via funded swap",
        "Inverse daily leveraged exposure (-1x short)",
        "Counterparty risk due to swap with Natixis",
        "Daily reset and compounding effects",
        "High risk rating (6/7)",
        "Collateralised swap structure",
        "Complex index tracking (leveraged inverse daily performance)"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 1x Short FAANG Daily ETP is a collateralised Exchange Traded Product that seeks to replicate the Solactive Daily Leveraged 1x short FAANG Index, which provides -1 times the daily performance of the FAANG Equal Weight Index TR. The product uses a funded swap agreement with Natixis as the counterparty, with collateral held at BNY Mellon. The replication method is synthetic, relying on derivatives (swaps) rather than physical holdings. The product provides inverse exposure with daily leverage reset, leading to compounding effects that cause returns over periods longer than one day to deviate from simple inverse multiples of the underlying index. The risk indicator is high (6 out of 7), reflecting the complexity and risk of loss, including counterparty risk and liquidity risk. The product is not UCITS compliant and is intended for sophisticated investors with specific knowledge. The PRIIPs KID and factsheet emphasize the complexity of daily leveraged inverse exposure, swap counterparty risk, and the need for investors to monitor positions daily. These factors combined meet MiFID II criteria for a complex financial instrument."
}