{
    "type": "ETP",
    "ucits": false,
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": true,
    "replication_method": "synthetic",
    "complex_factors": [
        "Leverage -3x exposure",
        "Inverse daily leveraged index tracking",
        "Synthetic replication via derivatives",
        "Daily rebalancing and compounding effects",
        "High risk of loss exceeding investment",
        "Opaque payoff structure",
        "Short recommended holding period",
        "Counterparty and collateral risk implied"
    ],
    "classification": "complex",
    "supporting_data": "The product is a collateralised exchange traded security (ETP) aiming to deliver -3 times the daily performance of the UBS Group AG equity security, tracking the iSTOXX Inverse Leveraged -3x UBS Index. It uses synthetic replication involving derivatives to achieve this leveraged inverse exposure. The product employs daily leverage rebalancing, causing compounding effects that make returns over longer holding periods unpredictable and complex. The recommended holding period is only 1 day, indicating high complexity and risk. The product is not capital protected, has a very high risk rating (7/7), and involves counterparty and collateral risks inherent in synthetic leveraged products. The structure and risks are not straightforward for retail investors with basic knowledge to understand, fulfilling MiFID II criteria for complex classification. According to MiFID II Article 25(4)(a)(vi) and Article 57 of the Delegated Regulation, such leveraged, synthetic, inverse products with embedded derivatives and complex payoff profiles are complex financial instruments requiring appropriateness assessments. The product is not UCITS compliant and is explicitly described as 'not simple and may be difficult to understand' in its KID. Therefore, it is classified as complex under MiFID II."
}