This process type creates toolpath that removes all the un-machined areas of a hypothetical previous tool. This is basically a pencil milling strategy calculated using a Reference Tool diameter. If there are radii on the model with values equal to or greater than the Reference Tool radius, these areas are not machined. This allows for fast toolpath calculation and good finishing.
You can also use boundaries to influence this calculation. The boundary, if used, is interpreted as an external shape and is used to trim the passes.