I wrapped the exhaust on one of my bikes and still burned a hole in my pants when I got a little too close to the pipe. It helps with the heat, but not much. As far as performance goes, you won't notice a difference.
If you do wrap it, go from back to front so the seams are facing rearward instead of forward. It will minimize the dirt collection as much as possible. Also MAKE SURE to wear full protection when wrapping even if you soak the wrap in water first That fiberglass shit is nasty.
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