{
    "fund_name": "Leverage Shares 3x Long ARK Innovation ETP",
    "type": "ETP",
    "ucits": false,
    "replication_method": "physical",
    "leverage": true,
    "inverse": false,
    "derivatives": false,
    "swaps": false,
    "complex_factors": [
        "Leverage (3x)",
        "Daily rebalancing with compounding effect",
        "High volatility underlying (ARK Innovation ETF)",
        "Short-term trading focus"
    ],
    "classification": "complex",
    "confidence": 95,
    "supporting_data": "The product is classified as complex primarily due to its 3x leverage, which magnifies both gains and losses, and the daily rebalancing mechanism that introduces compounding effects. While the replication method is physical (owning the underlying ARK Innovation ETF), the high leverage and short-term trading focus make it unsuitable for retail investors who may not fully understand the risks. The risk indicator of 7/7 and the warning that the product is 'not simple and may be difficult to understand' further support this classification. The fact sheet confirms physical replication but also highlights the high-risk nature of leveraged products, which aligns with MiFID II's complexity criteria. The absence of derivatives or swaps in the replication strategy does not mitigate the complexity due to the leverage and compounding effects.",
    "risk_level_assessment": "The product's risk profile is very high (7/7), which aligns with its complex classification. The leverage and compounding effects introduce significant volatility and potential for rapid losses, making it unsuitable for retail investors without sophisticated knowledge."
}