To be more precise, Lubegard "red" is a liquid wax ester synthesized from bio-lube seed oils (rape-seed oil, canola oil, peanut oil, soybean oil, etc.) and is intended to stabilize conventional dino-based ATFs. (Sperm whale oil was once added, roughly at the rate of a thimble-full per quart, by ATF blenders for just this purpose until the whaling ban prevented its continued use. GM's first response to compensate, was to specify the addition of common lard (which, not surprisingly, didn't work very well). Lubegard claims that their synthetic liquid wax technology is actually superior to sperm whale oil for this purpose. As such, Lubegard "red" contains no friction modifier content of its own. When additional friction modifier content over and above that already present (if any*) in the manufacturer's recommended ATF isn't needed, Lubegard "red" can be added for claimed longer ATF life and enhanced heat stability. As Islandvic pointed out, when "correction" to proprietary ATF quality is desired when using Dexron III ATF, such as the case of Japanese trannies, Lubegard "black" allegedly supplies both enhanced stability and the necessary FM content to maintain OEM fluid shift quality. (I used Lubegard "black" with Castrol Dexron III in a '96 Accord after eight drains, refills, and ten-mile drives at ~28,000 miles. The immediate results were silky, yet fast upshifts, and immediate but smooth downshifts under load - better than that box had ever attained with the Honda factory-fill ATF [These are NOT shift qualities prior generation Honda automatics were particularly noted for]. Totaled the car 3,000 miles later, so I have no personal data what the long term effects might've been.)
*Even an old Ford AT that calls for "Type F" ATF could also benefit from Lubegard "red".