{
    "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 Ferrari (RACE) 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 3x the underlying asset's performance. The high risk indicator (7 out of 7) and warnings about potential total loss of investment further support this classification. While the replication method is physical, the leverage and associated risks make it unsuitable for retail investors without specialized knowledge.",
    "confidence": 95,
    "counter_argument": "The ETP uses physical replication and does not explicitly rely on derivatives or swaps, which might suggest a non-complex classification. However, the leverage and compounding effects introduce significant complexity that requires sophisticated understanding, overriding the physical replication benefit.",
    "risk_level": "Very High (7/7)",
    "comprehension_warning": true,
    "additional_notes": "The product is structured as a debt security with a long-term maturity date (2073) but can be redeemed early under specific conditions. The lack of capital protection and the potential for substantial losses further justify the complex classification under MiFID II."
}