{
    "type": "ETP",
    "ucits": false,
    "replication_method": "physical",
    "leverage": true,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Daily Compounding",
        "Margin Borrowing"
    ],
    "classification": "complex",
    "supporting_data": "The product is a Collateralised Exchange Traded Security (ETP) that seeks to provide 3x the daily return of the KraneShares CSI China Internet ETF by investing directly in the underlying ETF shares and using margin borrowing to achieve leverage. The replication method is physical, with direct ownership of the underlying ETF shares, and no indication of synthetic replication or swap usage. There is no use of derivatives as an inherent part of the investment strategy, only margin borrowing to amplify exposure. The product carries a high risk rating of 7/7, reflecting the leverage and daily compounding effects, which can cause returns over periods longer than one day to deviate significantly from the expected 3x multiple of the underlying ETF's performance. The product is not UCITS compliant and is intended for sophisticated investors able to monitor positions daily. The complexity arises primarily from the leverage factor, daily rebalancing, compounding effects, and margin usage, which increase risk and make the product difficult to understand for retail investors. There is no capital protection, and the product can result in total loss of investment. No swap agreements or derivative counterparty risks are disclosed, and the underlying asset is a liquid equity ETF. The PRIIPs KID and factsheet confirm no swap or derivative usage, but margin borrowing is used to achieve leverage. The product is classified as complex under MiFID II due to the leverage, daily compounding, and the sophisticated nature of the product, despite physical replication and no derivative usage."
}