{
    "type": "ETC",
    "ucits": false,
    "replication_method": "synthetic",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "2x daily leverage",
        "synthetic replication",
        "swap-based structure",
        "daily reset compounding",
        "non-UCITS"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Wheat 2x Daily Leveraged ETC is classified as complex under MiFID II due to multiple factors: 1) It uses 2x daily leverage, which magnifies both gains and losses and requires daily monitoring, 2) It employs synthetic replication via swaps (explicitly mentioned in the PRIIPs KID), 3) The product has a daily reset mechanism that creates compounding effects making long-term returns unpredictable, 4) It is not UCITS-compliant, 5) The risk profile is rated 7/7 (highest risk), and 6) The product includes warnings about suitability only for informed investors with specific knowledge. The PRIIPs KID explicitly states this is not a simple product and may be difficult to understand, which aligns with MiFID II's complexity criteria. The use of swaps for replication (not just risk management) and the leveraged structure both contribute to the complexity determination.",
    "confidence": 95
}