Closed loop fueling uses a O2 sensor as a feedback loop for adjusting its fueling.
Closed loop is used lower in the RPM range.
Open loop runs fueling to what is in the fuel map.
motors go from closed loop to open loop at certain RPMs. not sure what it is on teh Ducati.
for more tech info:
http://www.autoshop101.com/forms/h58.pdf