{
    "type": "ETC",
    "ucits": false,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": [
        "Futures contracts",
        "Rolling costs",
        "Contango/backwardation effects",
        "Counterparty risk from swaps"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Natural Gas ETC is classified as complex due to several key factors. It uses synthetic replication via fully funded swaps to track the Bloomberg Commodity Natural Gas Subindex 4W Total Return Index, which introduces counterparty risk. The ETC is exposed to natural gas futures contracts, which involve rolling costs and potential contango or backwardation effects, adding complexity. The KIID explicitly states that the product is not simple and may be difficult to understand, further supporting its complex classification. Additionally, the risk indicator is rated 6 out of 7, indicating high risk, and the product involves collateralized debt securities with swap agreements, which are not straightforward for retail investors. The presence of these elements, particularly the synthetic replication and the inherent complexities of futures-based commodities, makes this a complex instrument under MiFID II.",
    "confidence": 90,
    "risk_level": 6,
    "counterparty_risk": true,
    "collateralized": true,
    "futures_rolling": true,
    "contango_backwardation_risk": true
}