When first loading a file / loop

HI

Brand new user here:

When I first load an audio file say 5 secs long. The tempo of Radial is (say) 120bpm.

The manual says:

"When you load a loop, radiaL automatically sets its playback parameters so that it fits the master tempo."

Dooes this mean that the 5 secs is stretched or compressed to 'fit' the nearest whole bar ... or Snap setting.... or does it just mean that it is assumed that the tempo of the file is 120 bpm and that the audio data is 'Locked" to 120bpm so that tempo adjustments speed it up or slow it down.(ie assigns that material a 'base' tempo)

Thanks for the illumination

Lee