{
    "ucits": false,
    "type": "ETP",
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": "Leverage, Derivatives, Complex Payoff Structure, Compounding Effect, High Risk Profile",
    "classification": "complex",
    "supporting_data": "The Leverage Shares 3x Long Taiwan ETP Securities are not UCITS-compliant and are classified as Exchange Traded Products (ETPs). They employ significant leverage (3x daily performance of the underlying ETF), which is a clear indicator of complexity under MiFID II, as leverage beyond standard UCITS limits is not permitted for non-complex instruments. The product uses derivatives to achieve its leveraged exposure, introducing additional risks such as counterparty risk and compounding effects that are difficult for retail investors to understand. The payoff structure is non-linear due to daily rebalancing, and the product carries the highest risk indicator (7/7), reflecting both market and structural complexity. The KID explicitly states that the product is 'not simple and may be difficult to understand,' and is intended for sophisticated investors with a very short investment horizon. These featuresu2014leverage, derivative use, complex payoff, and high risku2014collectively render the product complex under MiFID II Article 57 and Delegated Regulation EU 2017/565, regardless of the transparency of the underlying index or the physical/synthetic replication method. The product does not meet the criteria for non-complex instruments, particularly due to the presence of leverage, derivative exposure, and a structure that makes risk assessment challenging for the average retail investor."
}