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This circuit is an electronic version of fuse. The electronic fuse cuts off the current (like the ordinary fuse does) and lights up the LED when a certain current level is exceeded. The advantage of this fuse in comparison to a conventional one is that it can be reset and re-used. The electronic fuse can handle a 500mA maximum of current but it can be increased beyond 500mA by changing the value of R1 with the aid of this formula: R1 = 0.4(I), where I = desired maximum current.
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