{
    "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 UBS 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 3x multiple of the underlying asset. 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 ETP uses physical replication and does not explicitly rely on derivatives or swaps, the leverage mechanism itself introduces significant complexity and risk, aligning with MiFID II criteria for complex instruments.",
    "confidence": 95
}