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In short, it is a liquid that responds to magnets and magnetic fields. The longer answer is ferrofluid is an extremely fine powder, coated with a soap-like material called a surfactant, suspended in a mineral oil liquid base. The resulting magnetic suspension is called a ferrofluid. When no magnetic field is present, ferrofluid behaves and flows like a normal liquid. However, when a magnet or magnetic field is introduced, the ferrofluid is attracted to the field. Spikes then form along the magnetic field lines when the magnetic surface force exceeds the stabilizing effects of fluid weight and surface tension. Ferrofluid, while lots of fun just to play with, has many practical applications as well. Since ferrofluid has low resistance to flow, it can function as a liquid O-ring seal, kept in place with permanent magnets. Ferrofluid seals prevent dust particles from working into disk drive mechanisms and crashing the drive head into the disk. Also, ferrofluids cool the coils of high-power, hi-fi speakers. PLEASE NOTE: Ferrofluid will evaporate when exposed to the open air. As the ferrofluid evaporates , the fluid loses some of it's magnetic properties. Any sculptures created will lose their jagged edges. Also, please be sure to replace the bottle cap when not in use. ALSO NOTE: Ferrofluid can be very messy! Use the enclosed pipette/dropper for maximum control and containment. Wear gloves when possible and use the fluid on a clean and open workspace.