{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "3x Leverage",
        "Daily Reset Compounding Effect",
        "Synthetic Replication via Swaps",
        "High Volatility Risk",
        "Counterparty Risk from Swap Provider"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Long Amazon Daily ETP exhibits multiple complexity indicators under MiFID II. It uses synthetic replication via an unfunded swap with Natixis, creating significant counterparty risk. The 3x daily leverage introduces compounding effects that make long-term performance unpredictable and requires sophisticated understanding. The risk rating of 7/7, the highest possible, along with warnings about potential total loss of capital and the need for specific investor knowledge, further support the complex classification. The daily rebalancing mechanism and the fact that it is not UCITS-compliant add to its complexity. The product is explicitly stated to be suitable only for sophisticated investors who understand leverage and daily compounding effects.",
    "confidence": 95,
    "risk_level": 7,
    "counterparty_risk": true,
    "compounding_effect": true,
    "intended_investor": "sophisticated",
    "regulatory_warning": "The KIID explicitly states 'You are about to purchase a product that is not simple and may be difficult to understand,' which is a strong indicator of complexity under MiFID II."
}