{
    "ucits": true,
    "type": "ETF",
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "Leverage, Use of derivatives for daily 2x leverage, Compounding effect, High risk profile",
    "classification": "complex",
    "supporting_data": "The product is a Leverage Shares 2x Advanced Micro Devices ETP Securities, which is a collateralised exchange traded security (ETP), not a UCITS ETF in the strict sense, but an ETP. It provides 2 times the daily performance of the underlying equity security, implying daily leverage and daily rebalancing. The product uses derivatives to achieve this leverage, as indicated by the description of the compounding effect and the daily leverage rebalancing mechanism. The product is not capital protected and has a very high risk indicator (7/7), reflecting the leverage and volatility exposure. The product is intended for sophisticated investors with the ability to monitor frequently and understand the risks of leveraged products. The use of leverage and derivatives integral to the investment objective, combined with the complexity of the compounding effect and the high risk profile, make this product complex under MiFID II rules. According to MiFID II Article 254 and Delegated Regulation EU 2017/565 Article 57, products that embed derivatives integral to the strategy and use leverage beyond UCITS limits are complex. The product is not a UCITS ETF but an ETP, which is a different type of instrument and generally considered complex when leverage and derivatives are involved. The replication method is physical in the sense that the underlying asset is the equity security, but the leverage and derivative use for daily performance amplification introduce complexity. The productu2019s structure, risks, and payoff are difficult for retail investors with basic knowledge to understand, triggering the complex classification. Therefore, the classification is complex due to leverage, derivative use, and the nature of the product as a leveraged ETP rather than a standard UCITS ETF."
}