This is the general System Dynamics unrestricted Rate element, whereby the rate itself is determined by a single variable in its laundry list. The indicated direction of mass flow simply denotes the direction of positive mass flow. However if the control signal of the rate assumes a negative value, mass will flow in the opposite direction.
The model contains a dissipative loss of enthalpy (but not mass) to the environment. Mass is always conserved. By attaching an R element to a 1 junction, we guarantee that the mass flow is not affected at all by the dissipative term. Only enthalpy is being dissipated.
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.BondLib.SystemDynamics.Rates.Rate_1