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cooler has a water jacket that goes on first then the oil filter and its either plumbed in to the water bottle, or in to a seperate mini radiator, if u go to a scrap yard u can pick up some off of old cars pretty easy
Not a lot, its just a passive heatsink. Which would only supply minimal cooling if it was a good tight fit onto the filter. These are really more for looks than performance, although yes if you can get one dirt cheap it will make a slight difference. Really to properly keep the oil temp stable you need to extend the cooling circuit with an external oil cooler front mounted.