{
    "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 Square ETP is classified as complex due to its 3x leverage, which amplifies both gains and losses, making it unsuitable for retail investors without sophisticated knowledge. The compounding effect from daily rebalancing introduces additional complexity, as returns over longer periods may deviate significantly from the expected multiple of the underlying asset's performance. The high risk profile (rated 7 out of 7) and the explicit warning that the product is not simple and may be difficult to understand further support this classification. While the replication method is physical, the leverage and associated risks make it a complex instrument under MiFID II.",
    "confidence": 95,
    "counter_argument": "Some might argue that the physical replication and lack of direct derivative usage could suggest a non-complex classification. However, the leverage and compounding effects introduce significant complexity that requires sophisticated understanding, overriding this argument.",
    "risk_level": 7,
    "comprehension_warning": true
}