{
    "type": "ETP",
    "ucits": false,
    "fund_name": "GraniteShares 3x Short BAE Systems Daily ETP",
    "investment_objective": "To replicate the performance of the Solactive Daily Leveraged 3x Short BAE Systems plc Index, providing -3 times the daily performance of BAE Systems plc shares.",
    "primary_asset_class": "Equity",
    "geographic_focus": "UK (BAE Systems plc)",
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": true,
    "inverse": true,
    "complex_factors": [
        "Leverage",
        "Inverse exposure",
        "Synthetic replication via funded swap",
        "Counterparty risk",
        "Daily reset and compounding effects"
    ],
    "classification": "complex",
    "supporting_data": "The product is a collateralised Exchange Traded Product (ETP) that seeks to provide -3x daily leveraged inverse exposure to BAE Systems plc shares by tracking the Solactive Daily Leveraged 3x Short BAE Systems plc Index. The replication is synthetic, achieved through a funded swap agreement with Natixis as the swap counterparty, with collateral held at BNY Mellon. 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 risk indicator is at the highest level (7/7), indicating very high risk. The product carries significant counterparty risk, as the swap counterparty's failure could lead to loss of investment. The product is not UCITS compliant and is intended only for sophisticated investors with specific knowledge of leveraged and inverse products. Costs include swap fees and ongoing costs related to the swap and index licensing. The PRIIPs KID and factsheet confirm the use of swaps, leverage, and collateralisation, and warn about the complexity and risks of daily compounding and leveraged inverse exposure. These factors combined meet MiFID II criteria for classification as a complex financial instrument."
}