{
    "ucits": true,
    "type": "ETP",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": "Leverage, Synthetic replication, Embedded derivatives, Structured product features, Daily rebalancing compounding effect",
    "classification": "complex",
    "supporting_data": "The product is a Leverage Shares 3x Long Ferrari ETP Securities, which is a collateralised exchange traded security with 3x leverage on the daily performance of Ferrari NV ADR equity. It uses synthetic replication via the iSTOXX Leveraged 3x RACE Index, which implies derivatives (swaps or similar) are integral to the strategy. The product explicitly involves leverage (3x), daily rebalancing, and a compounding effect that can cause returns to deviate significantly from the underlying asset over periods longer than one day. The product is not capital protected and carries high risk (risk class 7/7). The use of derivatives is central, with counterparty and collateral risks inherent, making the structure complex and difficult for retail investors with basic knowledge to understand. The product documentation includes a mandatory comprehension alert stating 'You are about to purchase a product that is not simple and may be difficult to understand.' This aligns with MiFID II Article 57 and ESMA guidelines that classify leveraged synthetic ETFs and structured products with embedded derivatives as complex. The product is not a UCITS ETF but an ETP security, which under MiFID II is generally complex when leverage and synthetic replication are involved. Therefore, the classification is complex."
}