The issue with the PSD2002's is that the areas around the voice coil aren't sealed. Following is the reply made by an Eminence designer when asked specifically about using ferrofluid with their PSD2002 compression driver:"We have experimented with FerroFluid many times and always come to the same conclusions: it is not for us. It has some advantages, but we feel the disadvantages outweigh them. It does help raise the power handling a bit, but not dramatically. The downsides are it is messy, it is expensive, and it evaporates over time turning into a thick sludge. Not a pretty thing."