{
    "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 Zinc - EUR Daily Hedged ETC is classified as complex primarily due to its exposure to commodity futures, which introduces complexities such as rolling costs, contango/backwardation effects, and currency hedging mechanisms. While it does not use leverage or swaps explicitly, the synthetic replication of a commodity index through futures contracts inherently involves derivative instruments, making it difficult for retail investors to fully understand the risks. The KIID explicitly states that the product 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": 85
}