Here is a quote from their web site:
"As with all HI-Temp paint levelers, the Medium Cut uses a micro-bead, chemical abrasive for virtually swirl free application. This allows the user to move directly to the final step of wax application. In comparison, compounds use a mechanical abrasive which leaves scratches, and requires an additional step to remove that damage."
Also, Irene at Top of the Line has always responded to my questions. Shoot her an email