{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Swap usage",
        "Synthetic replication",
        "Counterparty risk",
        "Daily compounding effects"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Long Glencore Daily ETP is a collateralised Exchange Traded Product (ETP) that seeks to replicate 3 times the daily performance of Glencore plc via the Solactive Daily Leveraged 3x Long Glencore 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 and compounding effects, which can 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 for sophisticated investors with specific knowledge of leveraged and swap-based products. The PRIIPs KID and factsheet confirm the use of swaps, leverage, and collateralisation, and warn about the complexity of daily rebalancing and compounding. There is no capital protection, and the product can result in total loss of invested capital. These factors\u2014synthetic replication via swaps, leverage, counterparty risk, and complex daily compounding\u2014drive the classification as a complex financial instrument under MiFID II."
}