So what is it and where does it go??? 2000 c50 2-stroke

I highly doubt this has anything to do with my power loss issues, but in digging around I found this sensor with one pink and one black wire dangling down beside the starboard edge of the cylinder head.

While you're looking at this if anyone wants to give a little input on my running issue...My 2000 c50 idles and throttles up like a champ, but after running up around 4000-4500 rpms for a few minutes, I start to lose power. Like I am very slowly cutting throttle, but all on its own. No alarm, it doesn't die. I bring it back to idle on my own and it idles just fine. After a few seconds I can give it throttle up to full power again. Pulled plugs and they all look great, no watery fuel smell, no non-burnt fuel/oil excess. I also pumped the primer bulb when it did this to no avail, and it felt normal. Anywhere else I should be looking?
Tomorrow I will go through carbs and see if that solves my power loss.

So this is the sensor dealio I am trying to identify and figure out where it goes.

Thanks!

Re: So what is it and where does it go??? 2000 c50 2-stroke

It is the temperature switch for motor overheat,
the one above it is the switch that tells motor is warmed up

Might check timing to see if it is changing when problem shows up and check to see if spark is dropping on one or more cylinders
If good spark and timing stays in spec then could have something floating around in bowls plugging jet fro time to time.

If that switch was puled to keep alarm from coming on to sell motor, then you maybe harming motor if it is overheating.
Compression would be good thing to check