{
    "ucits": false,
    "type": "ETC",
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": "Leverage, Derivatives, Complex Commodity Futures Exposure, Daily Reset Compounding, High Risk Profile, No Capital Protection, No UCITS Status",
    "classification": "complex",
    "supporting_data": "The WisdomTree Copper 3x Daily Leveraged ETC is not a UCITS product, but an Exchange Traded Commodity (ETC) that provides 3x daily leveraged exposure to copper futures via the Solactive HG Copper Commodity Futures SL Index. The product uses derivatives (futures contracts) to achieve its leveraged objective, which is central to its investment strategyu2014not merely for efficient portfolio management. The daily reset mechanism introduces a compounding effect, making the product's performance over periods longer than one day significantly different from a simple 3x multiple of the index, a feature that is complex and not easily understood by retail investors. The product carries the highest risk indicator (7/7), offers no capital protection, and is intended for informed investors who can bear total loss of capital. The structure, risks (including market, leverage, compounding, and issuer risk), and payoff profile are not straightforward and require advanced knowledge to comprehend. These characteristicsu2014significant leverage, central use of derivatives, complex payoff due to daily reset, high risk, and lack of UCITS statusu2014clearly place this ETC in the 'complex' category under MiFID II, regardless of its listing on a regulated market or the transparency of its index. The product would not satisfy the criteria for 'non-complex' under Article 57 of the MiFID II Delegated Regulation, particularly due to its embedded leverage, derivative exposure, and the complexity introduced by daily reset compounding."
}