{
    "type": "ETP",
    "ucits": true,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Daily Reset Leverage",
        "Compounding Effect",
        "Use of Futures Contracts",
        "Collateralised Debt Security Structure",
        "High Risk Level 7",
        "Complex Benchmark Index",
        "Potential Tracking Error due to Roll Costs"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Magnificent 7 3x Daily Leveraged product is a UCITS eligible Exchange Traded Product (ETP) that provides 3x leveraged exposure to the WisdomTree US Bluechip Select (NTR) Index. The product uses a fully collateralised structure and achieves its exposure through futures contracts referenced in the benchmark, implying synthetic replication rather than physical replication. There is no explicit mention of swap agreements, but the use of futures and collateralised debt security structure indicates derivative usage inherent to the strategy. The product applies daily leverage with a reset mechanism, leading to a compounding effect that causes deviation from the underlying index's performance over periods longer than one day. The risk indicator is at the highest level (7/7), reflecting the high risk and complexity of the product. The KIID explicitly states that the product is 'not simple and may be difficult to understand' and is intended for informed investors with specific knowledge or experience. The product does not provide capital protection and carries significant market and issuer risk. The costs include significant transaction costs (3.25% estimated annually) related to maintaining the leveraged position, consistent with complex derivative management. The product's structure as a collateralised debt security and the leveraged exposure to a complex index with futures rolling costs (implied by references to roll and compounding effects) further support the complexity classification. No funded or unfunded swap language was found, so 'swaps' is false, but derivatives are true due to futures usage. The product is not inverse but leveraged 3x long. Overall, the combination of leverage, synthetic exposure via derivatives, daily reset compounding, and high risk rating drives the MiFID II classification as complex."
}