{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Swap usage",
        "Synthetic replication",
        "Daily reset compounding effect",
        "Counterparty risk"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Long 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 Long Royal Dutch Shell PLC Index. The product uses a swap agreement with Natixis as the swap provider, indicating synthetic replication. The swap is collateralised but exposes investors to counterparty risk. The product explicitly uses leverage (3x) with daily reset, which introduces a compounding effect that can cause returns over longer periods 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. The KIID states the product is 'not simple and may be difficult to understand' and is intended for investors with specific knowledge and experience. There is no capital protection, and the product can lose the full investment. Costs include portfolio transaction costs and ongoing management fees but no performance fees. The use of swaps, leverage, daily reset compounding, and counterparty risk are all key complexity drivers under MiFID II. The product\u2019s synthetic replication and leveraged exposure classify it as complex, despite the underlying asset being a single equity security. The PRIIPs document and KIID both emphasize the complexity and risk, confirming the classification."
}