{
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "synthetic",
    "ucits": false,
    "type": "ETC",
    "complex_factors": "Leverage, Derivatives, Futures-based index, Compounding effect, Roll costs, Contango/backwardation, High risk profile",
    "classification": "complex",
    "supporting_data": "The WisdomTree Brent Crude Oil 3x Daily Leveraged ETC is a certificated, collateralised debt security designed to provide 3x the daily performance of a Brent Crude Oil futures index. It uses significant leverage (3x daily reset), which introduces a compounding effect that can cause returns over periods longer than one day to deviate substantially from a simple multiple of the index. The product is futures-based, meaning it is exposed to roll costs and contango/backwardation effects in the oil futures market, which are complex concepts for retail investors. The ETC does not qualify as a UCITS, and its structure (leveraged, futures-based, daily reset) makes its risk and return profile difficult for the average retail investor to understand. The product is explicitly intended for informed investors who can bear loss of capital and have experience with similar products. The risk indicator is 7/7 (highest risk), and the product carries no capital protection. These featuresu2014leverage, derivatives (futures), complex index methodology, and high risku2014are all factors that, under MiFID II Article 57 and ESMA guidance, render the product complex, requiring an appropriateness assessment for non-advised sales[ESMA35-36-1640]. The product is not a share, bond, or UCITS, and does not meet the criteria for non-complex instruments under MiFID II."
}