{
    "type": "ETC",
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "ucits": false,
    "complex_factors": [
        "Fully collateralised swap structure",
        "Commodity futures rolling",
        "Contango/backwardation effects",
        "Counterparty risk exposure"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Energy ETC is classified as complex primarily due to its synthetic replication method using fully collateralised swaps, exposure to commodity futures rolling risks (contango/backwardation), and significant counterparty risk. While it is UCITS eligible, the product's structure involves sophisticated mechanisms like daily swap rate adjustments and collateral management that require specialized knowledge to fully understand. The KIID explicitly states 'You are about to purchase a product that is not simple and may be difficult to understand,' which aligns with MiFID II's complexity criteria. The risk indicator of 6 out of 7 further supports this classification, as does the detailed discussion of roll costs and futures contract mechanics in the factsheet.",
    "confidence": 90,
    "risk_level": 6,
    "counterparty_risk": true,
    "roll_costs": true,
    "contango_backwardation": true,
    "collateral_management": true,
    "comprehension_warning": true
}