{
    "ucits": false,
    "type": "ETP",
    "leverage": true,
    "derivatives": true,
    "swaps": true,
    "inverse": true,
    "replication_method": "synthetic",
    "complex_factors": "Leverage, Swaps, Synthetic Replication, Daily Rebalancing, Compounding Effect, High Risk Profile, No Capital Protection, Intended for Sophisticated Investors",
    "classification": "complex",
    "supporting_data": "The Leverage Shares -3x Short Artificial Intelligence (AI) ETP Securities are not UCITS-compliant and are classified as Exchange Traded Products (ETPs). They employ significant leverage (-3x daily), use swaps and synthetic replication to achieve their investment objective, and are explicitly inverse products. The structure involves daily rebalancing, which introduces a compounding effect that can significantly alter returns over holding periods longer than one day, a feature that is difficult for retail investors to understand. The product carries the highest risk indicator (7/7), offers no capital protection, and is intended for sophisticated investors who can monitor their investments frequently and understand the risks of compounded returns and leverage. These featuresu2014leverage, synthetic replication, daily rebalancing, compounding, and the use of swapsu2014are all hallmarks of complexity under MiFID II Article 57 and Delegated Regulation EU 2017/565, as they make the productu2019s risk and payoff profile opaque and challenging for the average retail investor to comprehend. The KID explicitly states that the product 'is not simple and may be difficult to understand,' aligning with regulatory expectations for complex instruments. The presence of swaps (a type of derivative) and the central role of synthetic replication further confirm the complexity, as derivatives and synthetic structures are specifically cited in MiFID II as complex features when they are integral to the productu2019s strategy[3]. The productu2019s high risk, lack of capital protection, and targeting of sophisticated investors with a very short recommended holding period all reinforce that this ETP does not meet the criteria for a non-complex instrument under MiFID II."
}