{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": true,
    "inverse": true,
    "complex_factors": [
        "3x Leverage",
        "Inverse Exposure",
        "Synthetic Replication via Funded Swap",
        "Counterparty Risk",
        "Daily Reset and Compounding Effects"
    ],
    "classification": "complex",
    "supporting_data": "The product is a GraniteShares 3x Short AMD Daily ETP Securities, which seeks to replicate -3 times the daily performance of AMD shares via the Solactive Daily Leveraged 3x short AMD Index. The replication is achieved synthetically through a funded swap agreement with Natixis, with collateral held at BNY Mellon. The product explicitly uses leverage (3x) and inverse exposure (-3x), with daily reset and compounding effects that cause returns over periods longer than one day to deviate significantly from the underlying asset's performance. The product carries a highest risk rating of 7/7, indicating very high risk. The KIID and factsheet highlight significant counterparty risk, leverage, and complexity due to the daily rebalancing and compounding. The product is not UCITS compliant and is intended for sophisticated investors with specific knowledge. The presence of funded swaps, leverage, inverse exposure, and complex index construction (daily leveraged inverse index) all drive the classification as complex under MiFID II. The product also warns that it may be difficult to understand and is not suitable for all retail investors. Costs include swap fees embedded in ongoing costs. The product does not have capital protection and investors can lose their entire investment. These factors combined confirm the complex classification."
}