"Upon activation, front and rear wheel sensors compare speed differential to sense when rear traction is being broken (wheel-spin). Using exactly the same software logic developed and used by Ducati Corse, instant electronic adjustment to the ignition advance or a pattern of 'spark cuts' initiates immediate control over power output so as to restore traction at the rear wheel before re-establishing normal power delivery".
The 1098r traction control is only active if the full race exhaust and ecu are installed.
The 1198s traction control is the same except it cuts fuel instead of spark, so that it can be used with the catalized street legal exhaust.
Front wheel sensor
Rear wheel sensor
Magical black box (sits under seat) with accelerometer type device in it.
The 2008 1098R has a ignition cut system.
The 2009 1098R,1198S and Streetfighter S, has a fuel cut system.
Its a learning system, designed for track day riders, not very high-end racers and not really designed for the street. They wanted the 1200cc's of Ducati power to be better for the average track day rider. Its a great system, but it doesn't have very much adjustment and for racers, it can be too much of a hinderance due to the limitations of modifications. Lot's of people use it, lots of people love it.