{
    "type": "ETC",
    "ucits": false,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": [
        "Fully collateralised swap structure",
        "Commodity futures rolling",
        "Contango/backwardation effects",
        "Counterparty risk exposure"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Coffee ETC is classified as complex primarily due to its synthetic replication method using fully collateralised swaps to track coffee futures contracts. Key complexity factors include: 1) The use of swap agreements to gain exposure to the Bloomberg Commodity Coffee Subindex, 2) The inherent risks associated with commodity futures rolling (contango/backwardation effects), 3) Counterparty risk from swap agreements, and 4) The need for investors to understand complex commodity market dynamics. While the product is fully collateralised and UCITS-eligible, the synthetic nature and the specific risks of commodity futures trading make it complex under MiFID II. The PRIIPs KID explicitly states 'You are about to purchase a product that is not simple and may be difficult to understand,' which further supports the complex classification. The risk indicator of 6 out of 7 also suggests higher complexity and risk.",
    "confidence": 95,
    "risk_level": 6,
    "counterparty_risk": true,
    "commodity_rolling_risk": true,
    "contango_backwardation": true,
    "collateralised": true,
    "underlying_asset_complexity": "Commodity futures contracts with rolling mechanisms"
}