{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": true,
    "inverse": false,
    "complex_factors": [
        "3x Leverage",
        "Synthetic replication via funded swap",
        "Counterparty risk",
        "Daily reset and compounding effects",
        "Collateralised swap structure"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Long Diageo Daily ETP is a collateralised Exchange Traded Product (ETP) that seeks to replicate 3 times the daily performance of Diageo plc via the Solactive Daily Leveraged 3x Long Diageo plc Index. The product uses a funded swap agreement with Natixis as the swap counterparty, with collateral held at BNY Mellon, indicating synthetic replication. The use of a swap exposes investors to counterparty risk. The product employs 3x leverage with daily reset, causing compounding effects that can significantly deviate returns over periods longer than one day. The risk indicator is at the highest level (7/7), reflecting the amplified risk from leverage and derivative use. The product is not UCITS compliant and is explicitly described as complex and suitable only for investors with specific knowledge and experience. The PRIIPs KID and factsheet confirm the presence of swap fees, collateralisation, and the leveraged nature of the product. These factors combined\u2014synthetic replication, leverage, counterparty risk, and complex daily compounding\u2014drive the MiFID II classification as complex. Although the product does not have inverse exposure, the leverage and swap usage alone mandate a complex classification under MiFID II rules."
}