{
    "ucits": false,
    "type": "ETP",
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": true,
    "replication_method": "synthetic",
    "complex_factors": "Leverage, Derivatives, Daily Reset, Compounding Effect, High Risk Profile, No Capital Protection, No Investor Compensation",
    "classification": "complex",
    "supporting_data": "The WisdomTree S&P 500 3x Daily Short ETP is a leveraged, inverse product designed to deliver -3 times the daily performance of the S&P 500 Total Return Index. It achieves this through the use of derivatives (futures contracts), which are integral to its investment objective, not merely for efficient portfolio management. The product features a daily reset mechanism, leading to a compounding effect that can cause significant deviation from the expected leveraged return over periods longer than one day, especially in volatile markets. The KID explicitly states this is a high-risk product (risk indicator 7/7), with no capital protection and no investor compensation scheme. The product is intended for informed retail investors who can bear loss of capital and have specific knowledge or experience in similar products. The structure, risks (including counterparty risk from futures, potential for total loss, and the impact of daily reset/compounding), and payoff profile are not straightforward and require advanced understanding, making it difficult for the average retail investor to comprehend. Under MiFID II, such leveraged, derivative-based ETPs are considered complex due to the central role of derivatives in achieving the investment objective, the daily reset/compounding mechanism, and the high, non-linear risk profile. The product does not qualify as non-complex under Article 57 of the MiFID II Delegated Regulation, as it involves actual or potential liability exceeding the cost of acquisition (due to leverage and compounding), and the risks are not easily understood by retail investors with basic knowledge. The KID includes a comprehension alert, further indicating regulatory recognition of its complexity."
}