{
    "type": "ETP",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "ucits": false,
    "complex_factors": [
        "Leverage",
        "Swaps",
        "Daily Compounding Effect",
        "High Risk Profile"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Long Rolls-Royce Daily ETP is a leveraged product that seeks to replicate 3 times the daily performance of Rolls-Royce Holdings plc using a synthetic replication method via a swap agreement with Natixis. The product is backed by collateral held in a segregated account, but the use of a swap introduces counterparty risk. The daily reset of the leverage factor creates a compounding effect, which can lead to significant deviations from the expected performance over longer periods, especially in volatile markets. The risk indicator is classified as 7 out of 7, the highest risk class, indicating a very high level of potential losses. The product is intended for retail investors with specific knowledge and experience, and it explicitly states that it is not simple and may be difficult to understand. The presence of leverage, synthetic replication, and high risk profile are clear indicators of complexity under MiFID II.",
    "confidence": 95
}