

The red and yellow striped flag, or surface flag is displayed stationary at local flag stations to indicate that track conditions have changed due to substances on the track which could reduce grip or cause a car to lose control.
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Generally oil, coolant, small pieces of debris or sand are the hazards. It can also be "rocked" back and forth (but not waved) to indicate a small animal on the racing surface. Many organizations will display this flag for only two laps, after which the changed surface is considered to merely be "part of the track" (Grand Prix Racing). Wikipedia