{
    "type": "ETP",
    "ucits": false,
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "replication_method": "synthetic",
    "complex_factors": [
        "Leverage",
        "Inverse Exposure",
        "Daily Compounding",
        "Swap Counterparty Risk"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree FTSE 100 3x Daily Short ETP exhibits multiple complexity indicators under MiFID II. It is a leveraged inverse product with a -3x daily exposure to the FTSE 100, achieved through synthetic replication using swaps. The product's risk level is rated 7 out of 7, the highest possible, indicating significant risk. The use of daily compounding and the potential for tracking error due to volatility further complicates the product. Additionally, the product is not UCITS compliant, which often correlates with higher complexity. The presence of counterparty risk from swap agreements and the need for sophisticated understanding of leveraged and inverse products are key factors in this classification.",
    "confidence": 95
}