In order to apply the transition from the Liquid Matte pack properly, the following steps must be followed:
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You need to select the desired effect from the pack in Pack Manager Standalone and add it to the Davinci timeline.
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Position your video and the transition you added as in the example:
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Select the upper video and set it to “Foreground” composite mode via “Inspector”.
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Then set the added transition to “Lum” composite mode via “Inspector”.
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You have succeeded !
You can also check a 3-person video tutorial on the same subject: