{
    "success": true,
    "data": {
        "ucits": true,
        "type": "ETP",
        "leverage": true,
        "derivates": true,
        "swaps": true,
        "inverse": true,
        "replication_method": "synthethic",
        "complex_factors": "Leverage (3x), FX Forward Contracts, Compounding Effect due to daily reset, Index based on FX forward contracts (MSFXSM Triple Short Japanese Yen Total Return Index), designed to provide a leveraged short exposure.",
        "classification": "complex",
        "supporting_data": "The WisdomTree Short JPY Long USD 3x Daily ETP is classified as complex. It uses a 3x leverage factor meaning it provides investors with a leveraged short exposure to JPY relative to USD.The ETP tracks the MSFXSM Triple Short Japanese Yen Total Return Index (MSCEJPUS), providing a total return comprised of 3 times the daily performance of FX forward contracts being Short JPY relative to USD, plus the interest revenue adjusted to reflect fees and costs associated with the product.Price changes in the forward contracts referenced in the Benchmark will not necessarily result in correlated changes in the level of the Benchmark or of the Product. This may be due to a number of factors including the effect of rolling of forward contracts. For periods of longer than one day, the return of the product is not the same as the return of the Index multiplied by a factor of -3. The daily reset has a compounding effect which means that, the more volatile the performance of the Index, the more the performance of the product will deviate from the performance of the Index (multiplied by the Leverage factor) over a given period of time. The KIID states 'You are about to purchase a product that is not simple and may be difficult to understand.' This product's structure and leveraged exposure introduces complexity, making it difficult for a retail investor with basic knowledge to understand its risks. The use of leverage amplifies both gains and losses. ESMA's guidance emphasizes the need for appropriateness assessments to be applied for products like this, as the compounding effect on leveraged ETFs and the complexities of daily resets are difficult for the average retail investor to grasp. Given the underlying forward contracts and the 3x leverage, the product is inherently complex. Also it is clear to see that there are additional complex factors at play which make understanding the return of the product difficult. The rolling of forward contracts is also a key element that causes the complexity to increase. Also it is quite clear that the ETP is intended for a retail investor with specific knowledge or experience, increasing its complexity."
    }
}