{
    "type": "ETC",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "ucits": false,
    "complex_factors": [
        "Leverage",
        "Swaps",
        "Daily Compounding",
        "Counterparty Risk",
        "Commodity Futures Rolling"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Cocoa 2x Daily Leveraged ETC exhibits multiple complexity indicators under MiFID II. It uses synthetic replication via fully funded swaps to achieve 2x daily leveraged exposure to the Bloomberg Cocoa Subindex. The product's daily compounding effect, leverage, and reliance on derivative instruments (futures and swaps) introduce significant complexity. Additionally, the risk of counterparty default, rolling costs associated with futures contracts, and the potential for tracking error due to contango/backwardation effects further contribute to its complex classification. The high-risk rating (7/7) and warnings about potential capital loss reinforce this assessment.",
    "confidence": 95
}