{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Swap Usage",
        "Synthetic Replication",
        "Counterparty Risk",
        "Daily Reset and Compounding Effects"
    ],
    "classification": "complex",
    "supporting_data": "The product is a GraniteShares 3x Long AstraZeneca Daily ETP, which seeks to replicate 3 times the daily performance of AstraZeneca PLC via the Solactive Daily Leveraged 3x Long AstraZeneca PLC Index. The replication is synthetic, achieved through a swap agreement with Natixis as the swap counterparty, with collateral held by BNY Mellon. The product uses leverage of 3x daily, with a daily reset and compounding effect that causes returns over periods longer than one day to deviate significantly from a simple multiple of the underlying asset's returns. The product carries a high risk rating of 7/7, indicating very high risk and complexity. The KIID and factsheet explicitly mention counterparty risk, collateral management, and the need for investors to have specific knowledge and experience. The product is not UCITS compliant and is classified as an Exchange Traded Product (ETP), not an ETF. The use of swaps, leverage, synthetic replication, and the complex daily compounding mechanism all contribute to the classification as complex under MiFID II. Additionally, the product warns that it is not suitable for retail investors without specific knowledge, and the risk of total loss is high. There is no capital protection or principal guarantee. The costs include swap fees embedded in the ongoing costs. The product's complexity is further underscored by the fact that returns over periods longer than one day do not linearly track the underlying asset due to daily leverage reset and compounding effects."
}