{
    "type": "ETP",
    "leverage": true,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": false,
    "complex_factors": [
        "Leverage",
        "Compounding Effect",
        "High Risk Profile"
    ],
    "classification": "complex",
    "supporting_data": "The Leverage Shares 2x Facebook ETP is classified as complex due to its leveraged structure (2x daily exposure), which introduces significant risks such as compounding effects and high volatility. The KIID explicitly states that the product is not simple and may be difficult to understand, with a risk indicator of 7 out of 7. The ETP uses physical replication but employs margin (borrowing) to achieve its leveraged exposure, which amplifies both gains and losses. The recommended holding period is only 1 day, highlighting the complexity and risk associated with longer-term holdings due to daily rebalancing. The product is intended for sophisticated investors who understand leverage and can monitor their investment frequently. Additionally, the high-risk warning and the potential for substantial losses further support the classification as a complex instrument.",
    "confidence": 95,
    "counter_argument": "While the ETP uses physical replication and does not explicitly mention derivatives or swaps, the leveraged nature and the associated risks (compounding, high volatility) make it inherently complex. The use of margin to achieve leverage introduces additional risk factors that retail investors may not fully comprehend, aligning with MiFID II's criteria for complex instruments.",
    "risk_level": "Very High (7/7)"
}