The color functions are the same for outline and background:
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Select a color from the color picker
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Use the slider to the right to change overall contrast to access more colors
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The currently selected color is shown under the slider
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Define a color with RGB values
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Link to Channel Color
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Link to Channel Intensity
For more functions see
Magic Sheets Editor - Object Target (8.0)
For an object to have any function when selected in a Magic Sheet it needs to have a target.
1. Select an object
2. Select target
Magic Sheets - Object Color, Target & Attributes
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Cobalt 8.1 - 20181029