Magnetic particles (very similar to iron filings) are located in the powder cavity. When electricity is applied to the coil, the resulting magnetic flux tries to bind the particles together, almost like a magnetic particle slush. As the electric current is increased, the binding of the particles becomes stronger. The brake rotor passes through these bound particles. The output of the housing is rigidly attached to some portion of the machine. As the particles start to bind together, a resistant force is created on the rotor, slowing, and eventually stopping the output shaft.