What is this Timeline clip icon?

Hi, I'm sure this has a really simple answer, but I am stumped.
When I hover over a video timeline clip, there appears a small round icon in the upper right and left margins of the clip. I can drag either icon inwards, resulting in what looks like a fade; but when I replay the clip, nothing has changed.
This is not the fade in the Video Animator, which I can also move inwards; but this one does produce an expected fade.
Thanks very much,
Sonny

Thanks so much for all your help. SOLVED!
Yes, it must be my sloppy mismatching of Project and clip audio settings. I created a brand new Project (the last one had an existing clip, so I don't know its settings), inserted a clip, and the fade buttons work perfectly!
That brings up a topic that I am not too sure about. Suppose I mix old SD and HD clips. FCP takes the thinking out of it. It just works, most of the time. All of the clips have been optimized on import. But if I am to mix SD and HD, which should I use first to establish Project settings?
Is there a good reference that I might read to help understand better?

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