{
    "complex": true,
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "replication_method": "synthetic",
    "ucits": false,
    "type": "ETP",
    "complex_factors": [
        "5x leverage",
        "Synthetic replication with unfunded swaps",
        "Inverse exposure",
        "Daily compounding effect",
        "Counterparty risk"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Short GBP Long EUR 5x Daily ETP is classified as complex under MiFID II due to several key factors: 1) It uses 5x leverage, which amplifies both gains and losses, making it unsuitable for retail investors without specialized knowledge. 2) The ETP employs synthetic replication via unfunded swaps, introducing counterparty risk and requiring collateral management. 3) The inverse exposure to GBP/EUR currency movements adds complexity, as does the daily compounding effect of the leverage. 4) The product is structured as a debt security (ETP) rather than a traditional ETF, and while UCITS-eligible, it is not UCITS-compliant. 5) The risk profile is rated 7/7, indicating very high risk, and the product is explicitly stated to be for 'informed retail investors' with specific knowledge of financial markets. The PRIIPs KID and factsheet confirm the use of swaps and the leveraged/inverse nature of the product, reinforcing its complex classification.",
    "confidence": 95
}