{
    "type": "ETP",
    "ucits": false,
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "replication_method": "synthetic",
    "complex_factors": [
        "Inverse Exposure",
        "Daily Compounding",
        "Swap Counterparty Risk",
        "High Risk Rating"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree FTSE 100 1x Daily Short ETP is classified as complex due to several key factors. It employs synthetic replication through swaps to achieve its inverse exposure to the FTSE 100, which introduces counterparty risk and requires understanding of derivative mechanics. The product's daily compounding effect and inverse performance create a non-linear relationship with the underlying index, making it difficult for retail investors to fully comprehend the potential outcomes. Additionally, the high risk rating of 7 out of 7, the lack of capital protection, and the potential for significant losses further contribute to its complexity. The product is explicitly stated to be intended for informed retail investors with specific knowledge, reinforcing its complex nature under MiFID II.",
    "confidence": 95
}