The smart diff is designed to work in a similar way to some types of LSD in that off power it acts like a diff and on power it becomes locked. It operates using clamps to lock the small internal gears, this clamping action it tuned by changing the ramp angle and the tension of the release springs.
The gears should be coated in grease as its purpose is to act purely as a lubricant not to alter the handling of the diff like oil is in a standard diff. Using standard silicone diff oil in the smart diff although possible inhibits the effectiveness of the unit.
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