{
    "type": "ETP",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": [
        "FX forward contracts",
        "Rolling costs",
        "Collateralised debt structure",
        "Counterparty risk exposure"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Long CHF Short EUR ETP is classified as complex due to several key factors. Firstly, it uses synthetic replication through FX forward contracts to achieve its investment objective, which introduces counterparty risk and complexity in tracking the underlying index. The product's exposure to the MSFXSM Long Swiss Franc/Euro Total Return Index involves daily performance tracking of FX forwards, which requires understanding of rolling costs and potential contango/backwardation effects. Additionally, the product is structured as a collateralised debt security, adding another layer of complexity. While the risk indicator is rated 3 out of 7, the presence of synthetic replication, derivative instruments, and the need for specific knowledge to understand the product's mechanics make it complex under MiFID II. The PRIIPs KID explicitly states that the product is 'not simple and may be difficult to understand,' further supporting this classification.",
    "confidence": 90,
    "counter_argument": "Some might argue that the product's medium-low risk rating and UCITS eligibility suggest it could be non-complex. However, the use of synthetic replication, FX forwards, and the explicit warning about the product's complexity in the KIID override this argument. The need for investors to understand rolling costs and the potential for tracking error due to the synthetic structure are significant complexity factors.",
    "risk_level": 3
}