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This is an auxiliary template allowing to encode "|" within template parameters. It is unnecessary to get a "|"; "|" is a better choice for this purpose. However, the "|" delimiter for a Wiki table must be escaped by a template for use within a template; see also WP:QIF.

Note that there's no such problem with "!" (exclamation mark), it only affects "|" (vertical bar) in conjunction with the m:Help:Parameter_default mechanism within tables.

For obvious reasons this is a high risk template, and it cannot be substituted.