{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Synthetic replication via fully collateralised swaps",
        "Exposure to VIX futures with daily compounding and roll costs",
        "Counterparty risk due to swap counterparties",
        "Complex underlying index (S&P 500 VIX Short-Term Futures Index)",
        "Daily reset leverage with compounding effects"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree S&P 500 VIX Short-Term Futures 2.25x Daily Leveraged product is an Exchange Traded Product (ETP) that provides 2.25x leveraged exposure to the S&P 500 VIX Short-Term Futures Index. It uses a fully collateralised swap structure to achieve its investment objective, explicitly referencing swap counterparties and collateral held at The Bank of New York Mellon. The product is not UCITS compliant. The replication method is synthetic, relying on total return swaps rather than physical holdings. The product carries a leverage factor of 2.25x with daily reset, which introduces compounding effects and potential tracking error over periods longer than one day. The underlying index is based on VIX futures contracts, which are complex and subject to roll costs, contango, and backwardation effects, making the performance non-linear and difficult to predict. The risk indicator is at the highest level (7/7), indicating very high risk. The product documentation includes extensive counterparty risk disclosures and warns that it is intended for informed investors with specific knowledge of leveraged and short ETPs. The product is structured as a debt security, not as shares, and investors can lose their entire investment. The costs include management fees and transaction costs related to the underlying swaps. The PRIIPs KID and factsheet confirm the use of swaps and collateralisation, and the complexity of the underlying index and leverage mechanism. These factors combined meet the MiFID II criteria for classification as a complex financial instrument."
}