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A round parachute operates as an aerodynamic decelerator. The theory is to put out enough surface area that the resulting drag results in a fall rate that is survivable and that the jumper can walk away.
With rectangular parachutes, or ram air, the parachute is more akin to a glider. The parachute is a wing creating lift, so gravity powers it through the air, and drag keeps it from accelerating infinitely.
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