{
    "type": "ETC",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "replication_method": "synthetic",
    "ucits": false,
    "complex_factors": [
        "Leverage",
        "Swaps",
        "Inverse Exposure",
        "Commodity Futures",
        "Daily Compounding Effect",
        "High Risk Rating (7/7)"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Copper 3x Daily Short ETC exhibits multiple complexity indicators under MiFID II. It uses synthetic replication via swaps to achieve -3x daily leveraged short exposure to copper futures, which introduces significant counterparty risk and derivative complexity. The daily compounding effect and high volatility of commodity futures further complicate the product's performance characteristics. The risk rating of 7/7, the highest possible, underscores its complexity. The product is explicitly not UCITS-compliant and carries warnings about its suitability only for sophisticated investors. The use of unfunded swaps and the potential for significant tracking error due to rolling futures contracts add additional layers of complexity. The PRIIPs KID includes a comprehension warning, reinforcing its classification as a complex instrument.",
    "confidence": 95
}