{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": true,
    "inverse": true,
    "complex_factors": [
        "Leverage",
        "Inverse Exposure",
        "Synthetic Replication via Swap",
        "Counterparty Risk",
        "Daily Reset and Compounding Effects"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Short NVIDIA Daily ETP is a collateralised exchange traded product that seeks to replicate -3 times the daily performance of NVIDIA Corp through a synthetic replication method using a swap agreement with Natixis as the swap counterparty. The product explicitly uses leverage (3x inverse exposure) and daily reset of leverage, which introduces compounding effects that cause returns over periods longer than one day to deviate significantly from the underlying asset's performance multiplied by leverage. The product is backed by collateral held at an independent custodian but exposes investors to counterparty risk. The risk indicator is at the highest level (7/7), indicating very high risk and complexity. The product is not UCITS compliant and is intended for sophisticated investors with specific knowledge of leveraged and inverse products. The use of swaps, leverage, inverse exposure, and the complex daily compounding mechanism all contribute to the classification as a complex financial instrument under MiFID II. Additionally, the product's risk disclosures highlight the potential for total loss of capital and the need for investors to understand the product's risks fully. There is no capital protection or structured capital guarantee. Costs include swap fees embedded in ongoing costs. The product is not a simple physical replication ETF but a synthetic leveraged ETP with significant derivative and counterparty risk exposure."
}