The valve works like it does in the video below (original ghetto cutout setup)
Ford Flex with exhaust cutoutI live in AZ so no testing in snow or other bad weather including rain....

The valve is vacuum controlled and starts opening at around 6psi of boost, it is held closed by vacuum unlike electric motor versions.
You hook up the valve (it's a wastegate) to a post throttle boost reference (T into the brake booster line).
The exhaust dumps to the ground under the car where there is heat plating, you're fine there with no issues. It opens up and flows additional exhaust while still flowing some through the factory exhaust path. I picked up 50WHP on my Flex went from 550 to 600WHP with the cutout, on a pretty much stock car I would expect 15-20HP.
This piece replaces the factory 3rd cat so it is for offroad use only.