AHA - the ol' Squiggly Line transfer case! I have it....very rare.
Basically halfway between a 2-hi/4-hi/4-low and AWD (like a Denali but with 4-low) The 'puter is supposed to sense slippage and direct power or braking where needed when needed. I tried to do donuts in a snowy/icy parking lot – and it wouldn’t. It would just go where ever you steered it.
Works well as the 2-hi/4-hi/4-low give even power to each wheel, and this only goes to which is needed…but unlike AWD – not all the time. I still peaked at 23mpg with my 2005 XL/SLT w/AutoRide. One tip - if from a Dealer and you can get an extended warranty - get it.
Oh - OFF is only if you need to rock it if ever stuck. It defaults to ON...just leave it and let the 'puter do the work!
Some blurbs from the Manual:
Your vehicle may be equipped with the StabiliTrak® system which combines antilock brake, traction and stability control systems and helps the driver maintain directional control of the vehicle in most driving conditions. StabiliTrak® and part of the traction control system can be turned off or back on by pressing the StabiliTrak® button. The traction control system is part of the StabiliTrak® system. Traction control limits wheel spin by reducing engine power to the wheels (engine speed
management) and by applying brakes to each individual wheel (brake-traction control) as necessary.