{
    "ucits": true,
    "type": "ETP",
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": "Leverage, Synthetic replication, Daily rebalancing with compounding effect, Use of derivatives for leveraged exposure, High risk profile, Lack of capital protection, Complex payoff structure",
    "classification": "complex",
    "supporting_data": "The product is a Leverage Shares 3x Long Coinbase ETP Securities, which is a collateralised exchange traded security (ETP), not a UCITS ETF. It provides 3 times the daily performance of the Coinbase equity, implying significant leverage and daily rebalancing. The product uses derivatives to achieve this leveraged exposure, which is integral to its investment objective, making derivatives central to the strategy rather than limited to efficient portfolio management. The replication method is synthetic, as the return depends on an index (iSTOXX Leveraged 3x COIN Index) that tracks 3x the daily performance of the underlying asset via derivatives. The product has a high risk indicator (7/7), no capital protection, and a complex payoff profile due to the compounding effect of daily leverage. The KID explicitly states that the product is not simple and may be difficult to understand, and it carries counterparty and collateral risks inherent in synthetic leveraged products. According to MiFID II rules and ESMA guidelines, such leveraged synthetic products with embedded derivatives and complex payoff structures are classified as complex financial instruments requiring an appropriateness assessment for retail investors."
}