{
    "ucits": false,
    "type": "ETP",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "replication_method": "synthetic",
    "complex_factors": "Leverage, Synthetic replication, Embedded derivatives, Complex index exposure, Daily rebalancing compounding effect",
    "classification": "complex",
    "supporting_data": "The product is a Leverage Shares 3x Long ARM ETP Securities, which is a collateralised exchange traded security (ETP), not a UCITS ETF. It provides 3 times the daily performance of the Arm Holdings ADR equity security, implying significant leverage (3x). The product uses synthetic replication via the iSTOXX Leveraged 3x ARM Index, which tracks 3x daily performance, involving derivatives such as swaps. The daily leverage rebalancing causes a compounding effect, which can significantly deviate returns from the underlying asset over longer holding periods, increasing complexity. The product is non-interest bearing, not capital protected, and has a very high risk rating (7/7). It involves counterparty risk and collateral risk due to the use of derivatives and margin accounts. The KID explicitly states that the product is not simple and may be difficult to understand, and it is intended for sophisticated investors with the ability to monitor frequently and understand leverage and compounding risks. These features align with MiFID II criteria for complex instruments: use of derivatives integral to strategy, leverage beyond UCITS limits, synthetic replication, and complexity in understanding payoff and risks. Therefore, it is classified as complex under MiFID II rules."
}