{
    "type": "ETC",
    "ucits": false,
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": [
        "Leverage",
        "Synthetic replication using swaps",
        "High risk profile (7/7)",
        "Daily compounding effect",
        "Counterparty risk from swap agreements",
        "Commodity futures rolling complexity"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Petroleum 2x Daily Leveraged ETC exhibits multiple complexity factors under MiFID II. It uses synthetic replication through fully funded swaps to achieve 2x daily leveraged exposure to petroleum futures, which introduces significant counterparty risk and requires understanding of daily compounding effects. The product has a maximum risk rating of 7/7, indicating very high risk. The leverage factor and synthetic structure make it unsuitable for investors without specific knowledge of leveraged products and commodity futures markets. The KIID explicitly states 'You are about to purchase a product that is not simple and may be difficult to understand,' reinforcing its complex nature. The presence of swap agreements, leverage, and the technical nature of futures rolling all contribute to the complex classification.",
    "confidence": 95
}