{
    "type": "ETP",
    "ucits": false,
    "leverage": true,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": [
        "Leverage",
        "Compounding Effect",
        "High Risk Profile"
    ],
    "classification": "complex",
    "supporting_data": "The Leverage Shares 3x Long Mercedes Benz (MBG) ETP is classified as complex due to its 3x leverage, which amplifies both gains and losses. The product explicitly states it is not simple and may be difficult to understand, targeting only sophisticated investors. The compounding effect from daily rebalancing introduces additional complexity, as returns over longer periods may deviate significantly from the expected 3x multiple of the underlying asset. The risk indicator is the highest possible (7 out of 7), and the product warns of potential total loss of investment. While the replication method is physical, the leverage and compounding effects make it unsuitable for retail investors without specialized knowledge. The product also highlights that it is not capital protected and involves high volatility risk.",
    "confidence": 95,
    "counter_argument": "The ETP uses physical replication and does not explicitly mention derivatives or swaps, which might suggest it is non-complex. However, the leverage and compounding effects, combined with the high-risk profile and explicit warnings about its complexity, override this argument. The product's structure and risk characteristics align with MiFID II's definition of a complex instrument due to the potential for significant losses and the need for sophisticated understanding.",
    "risk_level": "Very High (7 out of 7)",
    "comprehension_warning": true
}