{
    "type": "ETC",
    "ucits": true,
    "replication_method": "synthetic",
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Synthetic replication using swaps",
        "Commodity futures exposure via derivatives",
        "Contango/backwardation effects",
        "Counterparty risk from swap agreements"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Wheat ETC is classified as complex under MiFID II due to several key factors: 1) It uses synthetic replication via swap agreements to achieve exposure to wheat futures contracts, which introduces counterparty risk. 2) The product's value is directly tied to the performance of commodity futures contracts that are continuously rolled, exposing investors to contango/backwardation effects. 3) While the ETC is fully collateralized and UCITS-eligible, the use of derivatives for replication purposes and the complexity of commodity futures markets make this product more suitable for investors with specific knowledge of these instruments. 4) The PRIIPs KID includes a comprehension warning indicating the product may be difficult to understand, further supporting the complex classification. 5) The fact sheet confirms the use of swaps for replication and discusses roll yield impacts, which are concepts that may not be easily understood by basic retail investors.",
    "confidence": 90
}