{
    "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 Wheat - EUR Daily Hedged ETC is classified as complex due to several factors. Firstly, it tracks a commodity futures index (Bloomberg Wheat Sub Euro Hedged Daily Total Return Index), which introduces complexity through rolling futures contracts and potential contango/backwardation effects. The product also employs currency hedging, adding another layer of complexity. While it is UCITS-compliant and does not use leverage or swaps explicitly, the underlying mechanism of tracking a futures-based index and the associated risks (e.g., roll costs, counterparty risk from collateralization) make it difficult for retail investors to fully understand. The KIID explicitly states, 'You are about to purchase a product that is not simple and may be difficult to understand,' which aligns with MiFID II's criteria for complex instruments. Additionally, the risk level is rated 5 out of 7, indicating medium-high risk, further supporting the complexity classification.",
    "confidence": 90
}