{
    "type": "ETC",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": [
        "Commodity Futures",
        "Rolling Costs",
        "Currency Hedging"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Coffee - EUR Daily Hedged ETC is classified as complex due to several key factors. Firstly, it tracks a commodity futures index (Bloomberg Coffee Sub Euro Hedged Daily Total Return Index), which introduces complexities such as roll costs, contango, and backwardation effects. These factors are not easily understood by retail investors and require specialized knowledge. Additionally, the product employs currency hedging, adding another layer of complexity. While the document does not explicitly mention swaps or leverage, the synthetic replication of a commodity futures index inherently involves derivative instruments, which are a hallmark of complex products under MiFID II. The risk indicator of 6 out of 7 further supports this classification, as higher risk levels often correlate with increased complexity. The product is also subject to counterparty risk, as it is a collateralized debt security, which is another indicator of complexity.",
    "confidence": 85
}