{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Swap usage",
        "Synthetic replication",
        "Daily reset compounding effect",
        "High counterparty risk",
        "Collateralised swap structure"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Long Moderna Daily ETP Securities is a leveraged exchange traded product (ETP) that seeks to replicate 3 times the daily performance of the Moderna stock via the Solactive Daily Leveraged 3x Long Moderna Index. The product uses a collateralised swap agreement with Natixis as the swap provider, indicating synthetic replication rather than physical ownership of underlying securities. The swap is collateralised and held in a segregated account, but counterparty risk remains significant. The product explicitly states a leverage factor of 3x with daily reset, 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 leverage. The risk indicator is at the highest level (7/7), 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. There is no capital protection, and the product may lose the entire investment. The use of swaps, leverage, and the daily reset mechanism, combined with the collateralised structure and high counterparty risk, are key complexity drivers under MiFID II. The product also carries warnings about liquidity risk and the potential for significant losses, reinforcing its complex nature. No inverse exposure is present, but the leverage and synthetic swap structure alone classify this product as complex. Costs are relatively straightforward but include portfolio transaction costs and other ongoing costs, with no performance fees. Overall, the product\u2019s synthetic replication via swaps, leverage, and high risk profile align with MiFID II criteria for a complex financial instrument."
}