{
    "success": true,
    "data": {
        "leverage": false,
        "derivates": true,
        "swaps": true,
        "inverse": false,
        "replication_method": "synthethic",
        "ucits": true,
        "type": "ETF",
        "complex_factors": "The ETF uses FLEX Options, which are derivatives, to achieve its investment objective and provide a buffer against losses. The active management of the options and the determination of an upside cap introduce complexity not easily understood by retail investors. The Fund may use swaps",
        "classification": "complex",
        "supporting_data": "This UCITS ETF, the First Trust Vest Nasdaq-100u00ae Moderate Buffer UCITS ETF, is classified as complex because it actively utilizes Flexible EXchange Options (FLEX Options), which are derivatives, as the core strategy to achieve its investment objective. The use of derivatives, particularly options, introduces elements of complexity, counterparty risk, and valuation methodologies that the average retail investor with basic knowledge may not readily understand. The strategy aims to provide a return that matches the price returns of the Nasdaq-100 Index up to a certain upside cap, while also providing a buffer against losses. The fact that it is an actively managed investment strategy involving derivative instruments (FLEX Options) to achieve the buffer and the performance, with a cap on returns, classifies it as a complex product, as per MiFID II guidelines. Even though it is a UCITS compliant and does not explicitly use leverage or other opaque instruments, the FLEX Options are the main drivers of the product structure, risks, and payoff profile making it a complex product. This classification would trigger a comprehension alert in the KID as per the MiFID II requirements. The use of swaps is another indicator that the asset is complex."
    }
}