IIRC, there is a pressure sensor on the master cylinder that engages regen. Once regen is maxed (or bypassed in an emergency stop), then it goes to physical braking. I'm not exactly sure how the system works, but thats how its been explained to me.
I know the 1st gen system was a bit different in that the physical brakes were applied a bit with regen. On the 2nd gen they somehow made it so the regen was always first, with no physical braking until regen was maxed. I assume the 3rd gen is the same.
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