{
    "success": true,
    "data": {
        "ucits": true,
        "type": "ETC",
        "replication_method": "synthetic",
        "derivatives": true,
        "swaps": true,
        "inverse": false,
        "leverage": false,
        "complex_factors": [
            "Synthetic Replication (Total Return Swaps)",
            "Counterparty Risk",
            "Collateral Risk",
            "Commodity Futures Rolling Costs",
            "Currency Hedging Costs"
        ],
        "classification": "complex",
        "supporting_data": "The WisdomTree Soybeans - EUR Daily Hedged is an Exchange Traded Commodity (ETC) that aims to replicate the Bloomberg Soybeans Sub Euro Hedged Daily Excess Return Index using futures contracts. The KIID explicitly states it is a 'fully collateralised, UCITS eligible Exchange Traded Commodity (ETC) designed to provide investors with a total return exposure to Soybeans futures contracts currency hedged in EUR.' The method of replication is synthetic, as it tracks an index and does not hold the underlying physical commodity. This involves the use of derivatives, specifically futures contracts to gain exposure. The document also mentions currency hedging, which implies the use of currency derivatives. The potential for rolling costs associated with futures contracts and the inherent counterparty and collateral risks associated with derivative-based replication, as well as the complexity of currency hedging, make this product difficult for a basic retail investor to fully understand, despite its UCITS eligibility. The KIID also contains a prominent alert: 'You are about to purchase a product that is not simple and may be difficult to understand,' which is a strong indicator of a complex product classification. The use of derivatives to replicate the index performance is a key factor driving complexity."
    }
}