{
    "type": "ETP",
    "replication_method": "synthetic",
    "leverage": true,
    "inverse": true,
    "derivatives": true,
    "swaps": true,
    "ucits": false,
    "complex_factors": [
        "Leverage (3x Short)",
        "Inverse Exposure",
        "Daily Rebalancing",
        "Swap Usage",
        "Counterparty Risk",
        "High Volatility Risk"
    ],
    "classification": "complex",
    "supporting_data": "The GraniteShares 3x Short Netflix Daily ETP is classified as complex under MiFID II due to multiple factors: 1) It uses synthetic replication via a swap agreement with Natixis, creating counterparty risk. 2) The product offers 3x inverse leverage, which introduces significant volatility and compounding effects that are difficult for retail investors to understand. 3) The daily rebalancing mechanism means returns over periods longer than one day will deviate significantly from simple inverse performance. 4) The risk profile is rated 7/7, the highest level, indicating extreme risk. 5) The PRIIPs KID explicitly states this product is 'not simple and may be difficult to understand' and is intended only for sophisticated investors. 6) The fact sheet confirms the use of derivatives for leverage and the potential for magnified losses. While the product is collateralized, the complexity of the structure and the high-risk nature of the strategy make it unsuitable for retail investors without specialized knowledge.",
    "confidence": 95
}