The UFC will allow users to control games based on their level of activity - imagine walking across Skyrim on a treadmill in real time, or needing to pedal an exercise bike faster in order to accelerate in Gran Turismo.
A user will activate the app on their phone and pair it with a bluetooth-controlled Teensy board.
The app will configure the various modifications in play - for Skyrim, you may want "Steps/second" to modify or limit the "Y-axis" of the controller, but when playing GRID you may want "Steps/second" to modify or limit the "Z-axis" (right-trigger) of the controller.
The Teensy will handle the actual signal modification, and later revisions of the hardware will aim to make standard controllers easier to use while on exercise equipment.