{
    "leverage": true,
    "derivatives": true,
    "swaps": false,
    "inverse": true,
    "replication_method": "synthetic",
    "ucits": false,
    "type": "ETP",
    "complex_factors": "Leverage, Inverse, Synthetic Replication, Complex Index, Compounding Effect, High Risk Profile",
    "classification": "complex",
    "supporting_data": "The Leverage Shares -3x Short Facebook (META) ETP Securities are not UCITS-compliant and are structured as collateralised exchange-traded securities. The product provides -3 times the daily inverse performance of Meta Platforms, Inc. equity, tracking a leveraged inverse index. This involves daily rebalancing, which introduces a compounding effect that can significantly alter returns over holding periods longer than one day, especially in volatile markets. The product is intended for sophisticated investors who can monitor their investments frequently and understand the risks of leveraged and inverse products. The underlying assets are held in a margin account, and the product's return depends on the performance of the reference asset, net of fees, stock borrow costs, and return on interest. The structure involves synthetic replication through the use of derivatives (likely swaps or futures) to achieve the leveraged inverse exposure, which introduces counterparty risk and complexity. The product carries the highest risk indicator (7/7) and is not principal protected, meaning investors can lose their entire investment. The recommended holding period is one day, and holding longer can lead to returns that deviate significantly from -3 times the reference asset's performance due to compounding. The product is not protected by any deposit guarantee or investor compensation scheme. These featuresu2014significant leverage, inverse exposure, synthetic replication, complex index tracking, daily rebalancing, compounding effects, and high risku2014make the product difficult for retail investors with basic knowledge to understand, and thus it is classified as complex under MiFID II. The KID explicitly states, 'You are about to purchase a product that is not simple and may be difficult to understand,' further supporting the complex classification."
}