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Its all about the cooling.  A liquid cooling system can cool a lot better then a fan system and thus can handle more heat.  

Lets use the 500 rotax for example.  They have a Fan and Liquid of this engine.  

The liquid will have tighter tolorences more compression, Maybe a advanced timing.  All this stuff builds up heat.  Heat that only a liquid cooling system can cool.  

The fan version doesnt have the higher compression and will create a lot less heat and the fan will be able to cool it.  

One advantage of the fan is that when you have a lower compression engine you normally see a lot more life out of them.  Look at the 380 fan.  These things run forever.
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