{
    "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 Royal Dutch Shell Daily ETP is a collateralised exchange traded product that seeks to replicate -3 times the daily performance of Royal Dutch Shell plc via the Solactive Daily Leveraged 3x Short Royal Dutch Shell PLC Index. The product uses a funded swap agreement with Natixis as the swap counterparty, confirmed by explicit references to swap collateral held at BNY Mellon. The replication method is synthetic, relying on derivatives rather than physical holdings. The product employs leverage of 3x inverse exposure, 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 risk indicator is at the highest level (7/7), reflecting very high risk and complexity. The product is not UCITS compliant and is intended only for sophisticated investors with specific knowledge of leveraged and inverse products. Counterparty risk is significant, as the product depends on the swap provider's ability to meet obligations, mitigated only by collateral. Costs include swap fees embedded in ongoing costs. The product's complexity is driven primarily by its synthetic replication via swaps, high leverage and inverse exposure, daily compounding effects, and counterparty risk. These factors make it difficult for retail investors to understand and manage the risks, fulfilling MiFID II criteria for classification as a complex financial instrument."
}