Part identification

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DJK55

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Can anyone identify this part and explain it's purpose. it is mounted on the cold water inlet to an electric hot water tank. ( It is mounted vertically. Pic uploaded rotated 90')
Thanks

IMG_1503.JPG
 
Thats is a vaccum breaker that is missing its black cap. It prevents or breaks a siphon so the tank does not drain and dry fire
 
Thanks. Does it matter if it is mounted above the hot outlet or cold inlet.
 
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