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If you set up substitution strings for a supermodule, the substitutions will occur when the document is saved as a sigfile (or sent to the H8000, which is essentially the same thing). For this reason you should save designs using this feature as a .sif, even though this format is essentially obsolete.
The purpose of the substitutions is to allow multiple instances of a single supermodule to have different text, without requiring that you go in and manually edit each one.
As an example, if you use the default substitution target of "^1" set to be replaced by "high", and enter a statement of "^1 band: 10", this will become "high band 10" when the sigfile is saved.
To see this result, you will have to send it to an H8000, or save the design as a new sigfile and reload it.