The CUR file format is explained in more detail here . In particular, it mentions the following:
A monochrome (1 bit) icon or cursor will contain only four possible pixel values: black, white, transparent and inverted. A transparent or inverted pixel can be black or white. The color palette will contain only two colors: black (initial zero) and white (input). Transparent color is the original color of the display pixels. Inverted is the inverse color of the displayed pixels.
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