{
    "ucits": true,
    "type": "ETP",
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "physical",
    "complex_factors": "Leverage, Derivative exposure, Complex underlying asset (Coinbase shares), No capital protection, High risk profile",
    "classification": "complex",
    "supporting_data": "The product is a Collateralised Exchange Traded Security (ETP) issued by Leverage Shares plc, designed to provide 1:1 leveraged exposure to Coinbase Global, Inc. shares. It invests directly in the underlying shares and collateral assets held in a margin account, but the product is leveraged (1x leverage with margin account structure) and non-principal protected, exposing investors to full market risk and potential total loss. The product is not a UCITS ETF but an ETP, which is a different type of instrument. It carries a high risk rating (6/7), reflecting significant market volatility and risk of loss. The use of leverage and derivative-like margin account structure, combined with the lack of capital protection and the complexity of the underlying asset (a single equity with volatile price), means the product is complex under MiFID II. The productu2019s structure and risks are not straightforward for a retail investor with basic knowledge to understand, requiring an appropriateness assessment. The product also carries counterparty and liquidity risks inherent in the collateral and margin account setup. According to MiFID II Article 25(4)(a) and Article 57 of the Delegated Regulation, leveraged products and those using derivatives integral to the strategy are complex. The productu2019s KID includes a comprehension alert stating it is not simple and may be difficult to understand, confirming its complex classification. Therefore, despite physical holding of the underlying shares, the leverage and margin account structure, combined with the product type (ETP) and risk profile, classify it as complex under MiFID II rules."
}