{
    "fund_name": "UBS MSCI Canada UCITS ETF",
    "type": "ETF",
    "ucits": true,
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Currency Hedging via Derivatives",
        "Potential Use of OTC Derivatives"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses derivatives for currency hedging (selling currency forwards) and may use OTC derivatives, which introduces counterparty risk and complexity beyond standard physical replication. While the primary replication method is physical, the use of derivatives for hedging and potential OTC exposure elevates the product to complex under MiFID II due to the additional risks and the need for investor understanding of these mechanisms.",
    "confidence": 85,
    "risk_level": 6,
    "counterparty_risk": true,
    "liquidity_risk": false,
    "benchmark_complexity": false,
    "sustainability_risks": "not systematically integrated",
    "cost_structure": "simple",
    "additional_notes": "The ETF is physically replicated but uses derivatives for currency hedging and may employ OTC derivatives, which introduces complexity. The risk level is high (6/7), and the KIID explicitly mentions derivative-related risks, including counterparty risk. While the primary strategy is straightforward, the derivative usage for hedging and potential OTC exposure makes it complex under MiFID II."
}