Typically you create an explicit direct relation between all points that belong to an equipment object and the component in the station that represents the equipment. Instead, you can use this smart equip type relation to automatically create an implied relation between a point and its ancestor if that ancestor has the hs:equip tag applied.

The smart EquipRef relation implies an hs:equipRef between a Control Point and the nearest ancestor with the hs:equip tag. This relation is not implied on a Control Point whose proxy extension is the NullProxyExt. This relation is not implied on a Control Point if the point already has a direct hs:equipRef relation.