{
    "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 effect"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Short Tesla Daily ETP is a collateralised exchange traded product that seeks to replicate -3 times the daily performance of Tesla Inc through the Solactive Daily Leveraged 3x Short Tesla Inc Index. The product uses a funded swap agreement with Natixis as the swap provider, which exposes investors to counterparty risk mitigated by collateral held at an independent custodian. The replication method is synthetic, relying on derivatives rather than physical securities. The product employs 3x leverage and inverse exposure, with daily reset of leverage causing a compounding effect that can significantly deviate returns over periods longer than one day. The risk indicator is at the highest level 7/7, reflecting very high risk and complexity. The product is not UCITS compliant and is explicitly described as 'not simple and may be difficult to understand,' intended only for investors with specific knowledge and experience. These factors\u2014synthetic replication, leverage, inverse exposure, swap usage, and high risk profile\u2014drive the MiFID II classification as complex. The product\u2019s structure, including the use of derivatives for inherent strategy implementation rather than risk management, and the presence of counterparty and liquidity risks, further support this classification."
}