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1. In some cases, the cofactor completes the active site of the enzyme or modifies it in such a manner that substrate binding can ensue. 2. The cofactor acts as a donor of electrons or atoms to the substrate and following the reaction is returned to its former state.
Cofactors are inorganic substrates. Some cofactors are required to produce a chemical reaction between the enzyme and the substrate, while others merely increase the rate of catalysis. Cofactors are sometimes attach to the enzyme, much like a prosthetic limb. Others are loosely bound to the enzyme.