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You are correct. Mike please explain how your fail safe works.Not trying to argue by any means...but the fail safe works when loss of radio signal takes place, it moves servos to a preposition setting as assigned during set up. So if this switch fails, you lose all "power" to the rig. I.e. the truck will just shut engine off and coast uncontrolled as there is no longer power to move the servo(s) to the prepositioned setting from the failsafe. Think of it like this...if the failsafe worked by loss of power...every time your shut off your rig by its switch, the servos would go to that assigned position...but they cant as they have no power.
If I am wrong with this...someone please correct me as this is how I have understood this for years...