{
    "type": "ETC",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "ucits": false,
    "complex_factors": [
        "Leverage",
        "Swaps",
        "Daily Compounding Effect",
        "High Risk Profile"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Sugar 2x Daily Leveraged ETC is classified as complex due to several key factors. It employs a synthetic replication method using fully funded swaps, which introduces counterparty risk and requires understanding of derivative instruments. The product offers 2x daily leveraged exposure to the Bloomberg Sugar Sub Excess Return Index, which involves daily compounding effects that can significantly deviate from the expected performance over longer periods. The risk profile is rated at the highest level (7 out of 7), indicating very high risk, and the product is explicitly stated to be suitable only for informed retail investors with specific knowledge. Additionally, the ETC is not UCITS compliant, further supporting its complex classification under MiFID II.",
    "confidence": 95
}