{
    "complex": true,
    "type": "ETC",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "ucits": false,
    "complex_factors": [
        "Leverage",
        "Synthetic replication",
        "Swap counterparty risk",
        "Commodity futures rolling",
        "Daily compounding effect"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Copper 2x Daily Leveraged ETC exhibits multiple complexity factors under MiFID II. It uses synthetic replication via fully funded swaps to achieve 2x daily leveraged exposure to copper futures, which introduces significant counterparty risk and requires understanding of daily compounding effects. The product's risk is rated 7/7 (highest), and it explicitly states it is 'not simple and may be difficult to understand.' The ETC's performance deviates from the simple multiple of the underlying index due to daily resetting of leverage and the impact of futures rolling costs. The product is not UCITS compliant and is structured as a collateralized debt security rather than a traditional fund structure. The comprehensive risk disclosures about potential tracking error, volatility magnification, and the need for daily monitoring further support the complex classification.",
    "confidence": 95
}