{
    "type": "ETP",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "ucits": false,
    "complex_factors": [
        "Leverage",
        "Synthetic replication",
        "Daily compounding effects",
        "Counterparty risk",
        "Complex index tracking"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Long EUR Short GBP 3x Daily ETP exhibits multiple complexity factors under MiFID II. It uses synthetic replication via unfunded swaps to achieve 3x daily leveraged exposure to EUR/GBP FX forwards, which introduces significant counterparty risk and requires understanding of daily compounding effects. The product's risk rating of 7/7, the explicit warning about complexity in the KIID, and the need for sophisticated investor knowledge all support this classification. While it is UCITS-eligible, the leverage and synthetic structure make it complex. The product's documentation repeatedly emphasizes the need for investor sophistication and understanding of leveraged products.",
    "confidence": 95,
    "risk_level": 7,
    "counterparty_risk": true,
    "compounding_effects": true,
    "daily_rebalancing": true,
    "comprehension_warning": true,
    "intended_investor": "sophisticated",
    "holding_period": "1 day",
    "collateralized": true,
    "credit_risk": true,
    "liquidity_risk": true,
    "currency_risk": true,
    "market_risk": true,
    "volatility_risk": true,
    "additional_notes": "The product's complexity is further evidenced by its structure as a collateralized debt security rather than a traditional fund, the explicit warnings about potential tracking error due to daily rebalancing, and the emphasis on the product being suitable only for investors who understand leverage and daily compounding effects. The PRIIPs KID's comprehension alert and the fact that this is a leveraged FX product using derivatives for primary exposure rather than just EPM purposes solidify the complex classification."
}