{
    "type": "ETC",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Fully Collateralised Swap",
        "Commodity Futures Exposure",
        "Counterparty Risk",
        "Rolling Costs"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Battery Metals ETC is classified as complex due to several key factors. Firstly, it uses a fully collateralised swap structure to achieve its investment objective, which introduces counterparty risk and requires understanding of swap mechanics. The product tracks a basket of commodity futures, which involves complexities such as roll costs, contango, and backwardation effects that may not be easily understood by retail investors. The KIID explicitly states that the product is 'not simple and may be difficult to understand,' which is a strong indicator of complexity under MiFID II. Additionally, the risk level is rated 5 out of 7, indicating medium-high risk, and the product is not UCITS compliant, further supporting its classification as complex. The presence of collateral management and the reliance on swap counterparties add layers of complexity that go beyond typical non-complex instruments.",
    "confidence": 90
}