{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Swap usage",
        "Synthetic replication",
        "Daily reset and compounding effects",
        "Counterparty risk"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Long AMD Daily ETP Securities is a collateralised Exchange Traded Product (ETP) that seeks to replicate 3 times the daily performance of AMD shares through the Solactive Daily Leveraged 3x long AMD Index. The product uses a swap agreement with Natixis as the swap provider, indicating synthetic replication. The swap is collateralised but exposes investors to counterparty risk. The product employs daily leverage with a 3x factor and daily reset, which introduces compounding effects 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. The use of swaps, leverage, synthetic replication, and the complex daily compounding mechanism, combined with significant counterparty risk and the product's high risk rating, all contribute to its classification as complex under MiFID II. There is no capital protection, and the product is intended only for sophisticated investors with specific knowledge. Costs include swap fees embedded in ongoing costs. The product documentation explicitly states it is 'not simple and may be difficult to understand,' reinforcing the complexity classification."
}