{
    "type": "ETP",
    "ucits": false,
    "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 GraniteShares 3x Short Microsoft Daily ETP uses a synthetic replication method backed by a funded swap agreement with Natixis, explicitly stated in the KIID and factsheet. The product seeks to deliver -3 times the daily performance of Microsoft shares, indicating triple leverage and inverse exposure. The swap is collateralised but exposes investors to counterparty risk, as collateral may be insufficient if the swap provider defaults. The product features daily leverage reset and compounding effects, which 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 the high risk and complexity. The product is not UCITS compliant and is intended only for sophisticated investors with specific knowledge. The costs include swap fees embedded in ongoing costs. The product is explicitly described as 'not simple' and 'may be difficult to understand,' with warnings about magnified losses and the need for daily monitoring. These factors combined\u2014synthetic funded swap usage, leverage, inverse exposure, counterparty risk, and complex return profile\u2014drive the classification as complex under MiFID II."
}