What are Oil Life Monitors Based Upon ?

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Just curious what determines the results of oil life monitors, is it basically an engine revolution counter ?. The one in my 06 Honda Civic seems to change by 10% increments lately by the appearance of things. It doesn't move for weeks then all of a sudden drops by 10% one day. I'm near 5,000 kms and it is reading 60% right now. It probably isn't sophisticated enough to account for weather conditions or oil temps because I do a lot of short trips and it has been all in cold weather since December.
 
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