{
    "complex": true,
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Leverage",
        "Swaps",
        "Daily Rebalancing",
        "Counterparty Risk"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree FTSE 250 2x Daily Leveraged ETP is classified as complex under MiFID II due to several key factors: 1) It uses synthetic replication via swaps to achieve its leveraged exposure (2x daily), which introduces counterparty risk and requires daily rebalancing. 2) The product's performance is based on daily compounding of leveraged returns, which can lead to significant deviations from the underlying index over time, making it difficult for retail investors to understand. 3) The KIID explicitly states that the product is 'not simple and may be difficult to understand' and is intended for 'informed retail investors' with specific knowledge of similar products. 4) The risk indicator is rated 7/7, the highest level, indicating very high potential losses. 5) The fact sheet confirms the use of 'fully collateralised swaps' and highlights the risks of leveraged products, including potential losses magnified by volatility. 6) The product is not UCITS compliant, which is often a red flag for complexity. While the ETP is fully collateralised, the combination of leverage, synthetic replication, and daily rebalancing mechanisms makes it unsuitable for retail investors without specialist knowledge.",
    "confidence": 95
}