{
    "type": "ETP",
    "leverage": true,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "ucits": false,
    "complex_factors": [
        "Leverage",
        "Compounding Effect",
        "High Risk Profile"
    ],
    "classification": "complex",
    "supporting_data": "The Leverage Shares 3x Long Taiwan ETP is classified as complex due to its 3x leverage factor, which amplifies both gains and losses. The product explicitly states it is designed for sophisticated investors who understand the risks of leverage and daily rebalancing. The KIID highlights a risk indicator of 7 out of 7, the highest possible, and warns of significant losses due to compounding effects over longer holding periods. While the replication method is physical (direct investment in the underlying iShares MSCI Taiwan ETF), the leverage and compounding risks introduce complexity beyond standard ETF structures. The product also lacks capital protection and is subject to high volatility, making it unsuitable for retail investors without specialized knowledge.",
    "confidence": 95,
    "counter_argument": "Some might argue that the physical replication method and lack of direct derivative usage could suggest a non-complex classification. However, the leverage and compounding risks, combined with the explicit warnings about suitability only for sophisticated investors, override this argument. The high risk profile and the need for daily monitoring further justify the complex classification under MiFID II.",
    "risk_level": "Very High (7/7)",
    "additional_notes": "The product's structure, while physically replicated, involves significant leverage and compounding risks that are not easily understood by retail investors. The KIID explicitly states that the product is 'not simple and may be difficult to understand,' reinforcing its complex nature."
}