{
    "ucits": true,
    "type": "ETP",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "replication_method": "synthetic",
    "complex_factors": "Leverage, Synthetic replication, Derivatives, Inverse leverage, Compounding effect",
    "classification": "complex",
    "supporting_data": "The product is a Leverage Shares -3x Short China ETP Securities, which aims to provide -3 times the daily performance of the iShares MSCI China ETF. It uses leverage of 3x inverse exposure, which is a significant leverage factor. The product's return depends on derivatives embedded in the investment strategy, including swaps or similar instruments to achieve the leveraged inverse exposure. The replication method is synthetic, as the product does not hold the underlying securities but uses collateralized derivatives to replicate the index performance. The product documentation explicitly warns about the complexity of the product, the compounding effect over holding periods longer than one day, and the high risk (risk class 7/7). The product is intended for sophisticated investors with the ability to monitor frequently and understand the risks of inverse leveraged products. The use of derivatives is integral to the investment objective, introducing counterparty and collateral risks that are difficult for retail investors to understand. The product is not capital protected and may result in losses exceeding the initial investment if held improperly. These features align with MiFID II Article 254 and Delegated Regulation EU 2017/565 Article 57 criteria for complex instruments, including the presence of leverage, synthetic replication, embedded derivatives, and complexity in understanding payoff and risks. Therefore, the product is classified as complex under MiFID II."
}