I am currently replacing my Perko switch with a BEP 1 engine 2 battery bank VSR system. The upgrade of the 10ga wire is done (based on reading Warthog5 and Pelagic2530...great stuff!) as can be seen in the attached pic. My question is that I am 99% sure that I should cut the small red wire being held by the pliers very close to the potting near terminal with the red dot under the pliers (terminal cannot be seen in pic). Then install a 3/8 marine ring terminal and connect that ring terminal to terminal "B". The objective is to only provide power to the VSR when the ignition switch is in the "on" position. Does this make sense? 
