{
    "type": "ETP",
    "ucits": false,
    "leverage": true,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Leverage",
        "Compounding Effect",
        "High Risk Profile"
    ],
    "classification": "complex",
    "supporting_data": "The Leverage Shares 2x Visa ETP is classified as complex due to its leveraged structure (2x daily exposure to Visa stock), which introduces significant risks such as compounding effects and amplified volatility. The product explicitly states it is not simple and may be difficult to understand, targeting only sophisticated investors. The high risk indicator (6 out of 7) and the warning about potential losses exceeding initial investments further support this classification. While it uses physical replication, the leverage and daily rebalancing create a non-linear risk-return profile that is not easily understood by retail investors.",
    "confidence": 95,
    "risk_level": 6,
    "counter_argument": "The ETP uses physical replication and does not explicitly use derivatives or swaps, which might suggest a non-complex classification. However, the leverage and compounding effects introduce complexity that requires sophisticated understanding, overriding this argument.",
    "comprehension_warning": true,
    "key_risks": [
        "Compounding Effect",
        "Leverage Risk",
        "Volatility Amplification",
        "No Capital Protection"
    ],
    "regulatory_notes": "The product is regulated by the Central Bank of Ireland and the Financial Conduct Authority, with explicit warnings about its complexity and suitability only for sophisticated investors."
}