{
    "type": "ETC",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "replication_method": "synthetic",
    "ucits": false,
    "complex_factors": [
        "Leverage",
        "Inverse Exposure",
        "Daily Compounding Effect",
        "Futures Rolling Costs",
        "Counterparty Risk from Swaps"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Silver 3x Daily Short ETC exhibits multiple complexity factors under MiFID II. It uses synthetic replication via swaps to achieve a -3x daily leveraged inverse exposure to silver futures, which introduces significant counterparty risk and requires understanding of daily compounding effects. The product's high risk rating (7/7), non-UCITS compliance, and the need for sophisticated investor knowledge further support its complex classification. The ETC's structure involves daily resetting of leverage, futures rolling costs, and potential tracking error due to volatility, all of which require specialized knowledge to fully comprehend.",
    "confidence": 95,
    "risk_level": 7,
    "counterparty_risk": true,
    "daily_compounding_effect": true,
    "futures_rolling_costs": true,
    "volatility_impact": true,
    "sophisticated_investor_requirement": true,
    "non_ucits_compliance": true,
    "high_risk_rating": true,
    "comprehension_warning": true
}