{
    "complex": true,
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "ucits": false,
    "type": "ETC",
    "complex_factors": [
        "2x daily leverage",
        "synthetic replication",
        "swap-based structure",
        "commodity futures tracking"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Coffee 2x Daily Leveraged ETC is classified as complex under MiFID II due to several key factors: 1) It uses 2x daily leverage, which amplifies both gains and losses and requires daily monitoring, making it unsuitable for long-term holding. 2) The product uses synthetic replication via swaps to achieve its exposure to coffee futures, introducing counterparty risk. 3) The underlying Bloomberg Coffee Subindex Excess Return Index tracks commodity futures, which are inherently complex due to roll costs and contango/backwardation effects. 4) The product is not UCITS-compliant and carries a risk rating of 7/7. While the ETC is fully collateralized, the combination of leverage, synthetic replication, and commodity futures tracking creates a product that requires specialized knowledge to understand fully. The PRIIPs KID explicitly states it is not suitable for retail investors without specific knowledge of similar products, reinforcing its complex classification.",
    "confidence": 95
}