This is the general System Dynamics unrestricted additive Rate element, whereby the rate itself is determined by three variables 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_3