{
    "fund_name": "WisdomTree Japan Equity UCITS ETF - GBP Hedged",
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Currency Hedging via Forward Contracts",
        "Complex Index Methodology"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses forward foreign exchange contracts for currency hedging, which introduces derivative exposure and counterparty risk. Additionally, the underlying index employs a complex methodology involving composite risk scores (CRS) and dividend stream adjustments, which may not be easily understood by retail investors. While the replication method is physical, the use of derivatives for hedging and the sophisticated index construction contribute to the complexity.",
    "confidence": 85,
    "risk_level": 6,
    "counterparty_risk": true,
    "hedging_risk": true,
    "tracking_error_risk": true,
    "liquidity_risk": false,
    "esg_screening": true,
    "currency_hedging": true,
    "index_complexity": true,
    "comprehension_warning": false,
    "primary_reasoning": "The primary factors driving the 'complex' classification are the use of forward foreign exchange contracts for hedging purposes and the intricate methodology of the underlying index, which involves composite risk scores and dividend stream adjustments. These elements introduce additional layers of risk and complexity that may not be easily understood by retail investors.",
    "additional_notes": "Although the ETF is physically replicated and UCITS compliant, the combination of derivative usage for hedging and the complex index construction warrants a 'complex' classification under MiFID II. The presence of counterparty risk and potential tracking error further supports this determination."
}