{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Swap usage",
        "Synthetic replication",
        "Daily reset compounding effect",
        "High risk rating (7/7)",
        "Counterparty exposure"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Long Rolls-Royce Daily ETP is a leveraged exchange traded product (ETP) that seeks to replicate 3 times the daily performance of Rolls-Royce Holdings plc via the Solactive Daily Leveraged 3x Long Rolls-Royce Holdings plc Index. The product uses a funded swap agreement with Natixis as the swap provider, with collateral held in a segregated account, indicating synthetic replication. The product explicitly states the use of leverage (3x exposure) and daily reset of leverage, which introduces a compounding effect that can cause returns over periods longer than one day to deviate significantly from the underlying asset's performance multiplied by three. The risk indicator is at the highest level (7 out of 7), reflecting very high risk and complexity. The product is not UCITS compliant and is intended for investors with specific knowledge and experience, highlighting its complexity. The presence of swap counterparty risk, collateral management, and the leveraged nature of the product are key complexity drivers. There is no capital protection, and the product may result in total loss of investment. These factors combined meet MiFID II criteria for classification as a complex financial instrument."
}