{
    "success": true,
    "data": {
        "leverage": true,
        "derivates": true,
        "swaps": true,
        "inverse": true,
        "replication_method": "synthethic",
        "ucits": false,
        "type": "ETP",
        "complex_factors": "Leverage, 3x Daily exposure, Swaps, Compounding effect, Derivatives, Underlying Index",
        "classification": "complex",
        "supporting_data": "The GraniteShares 3x Long Alphabet Daily ETP is classified as complex due to its leveraged nature (3x exposure) and reliance on a total return swap with Natixis (the Swap Provider) to replicate the performance of the Solactive Daily Leveraged 3x Long Alphabet Inc Index. The use of derivatives (swaps) is central to the product's objective. The 'compounding effect' increases the complexity. The product is not simple and may be difficult to understand. The risk indicator is 7 out of 7. This is a highly leveraged product that is designed for a holding period of only 1 day. The daily reset introduces a u2018compounding effectu2019. This ETP also presents counterparty risk due to the use of a swap, which is not easily understood by retail investors. The KId states that the product is not simple and may be difficult to understand.",
        "ESMA_reference": "MiFID II Supervisory briefing, Appropriateness and execution-only, ESMA, April 2019 : ESMA considers shares that embed a derivative, like this one does, to be complex. Section 2.1, paragraph 16 shows a need to distinguish 'complex' and 'non-complex' investment products. Paragraph 19 (execution-only) and ESMA Q&A1. This meets the requirements for a complex determination. Section 2.4. ESMA also provides that a warning should be provided to clients if the investment product is not appropriate or where insufficient information is available to assess appropriateness. The KID also calls for such warnings."
    }
}