{
    "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 2x Apple ETP is classified as complex primarily due to its 2x leverage, which amplifies both gains and losses. The product explicitly states it is designed for sophisticated investors who understand the risks of leverage and daily rebalancing. The compounding effect, which can significantly alter returns over longer holding periods, adds another layer of complexity. The high risk indicator (6 out of 7) and the 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 mention derivatives or swaps, the leverage and the associated risks make it inherently complex under MiFID II rules.",
    "confidence": 95,
    "counter_argument": "Some might argue that the ETP is non-complex because it uses physical replication and does not explicitly rely on derivatives or swaps. However, the leverage and the compounding effect introduce significant complexity that requires sophisticated knowledge to understand fully. The high risk profile and the explicit warnings in the KIID and PRIIPs documents override any arguments for non-complex classification.",
    "risk_level": "High (6 out of 7)"
}