Hi all
I am glad to see some discussion on the topic especially since there are opinions and flying an experimental you can always do what you want. For aircraft under special light sport you are governed by whatever the OEM put in his manuals. The FAA leaves it up to them to determine such things. For the most part we have seen the OEM defer to the Rotax manuals for maintenance and the like when it comes to the engine. Liquid cooling, construction materials, and many other considerations suggest that advice would be better to get from the actual people who work on them all the time. Just my 2 cents on that part, take it for what you want.
On condition implies that you have some type of inspection process or plan. Outside the USA you need to provide a written plan of what on condition is, how you will verify that your engine can exceed the recommended time or hours of engine life. I like following the Transport Canada airworthiness notice b041 as a good example of a program if you go that way
https://tc.canada.ca/en/aviation/reference-centre/airworthiness-notices/airworthiness-notice-b041-edition-4-31-march-2005
At the very least this should be started before you reach your hard time, not at TBO. You need to establish a baseline and that should be when the engine is not over limits already. On a Rotax, particularly due to the gearbox and dry sump oil system, you need to consider a corrosion inspection of the gearbox and internal parts. At the very least on your annual after you are over your hard time it is best to remove the gearbox assembly and do a visual inspection for corrosion. (you only will need to inspect the assembly and not disassemble the parts inside) In addition pull one cylinder and do a borescope check of the crank, camshaft and internal parts to verify there is no internal corrosion. Engines that have low running hours but high calendar time are far more likely to have corrosion issues than those that are run on a regular basis.
One last note. Coolant hoses fail from the inside out generally. This is why they have a calendar time life and not hours. it is difficult to inspect hoses that appear good on the outside and say they will not fail. The number 1 failure of coolant hoses is ECD, electrochemical degradation, due to electrical discharge from the flowing hoses and types of metals used in the engine. This can cause electrical discharge that creates fissures inside the hoses and weaken them leading to failure at some point. Consider also the coolant types as the older iAT coolants actually are electrically active and can cause excess wear inside the hoses. (consider using OAT or HOAT coolants for this reason)
Anyway, big topic, good to consider your options.
Cheers
ELECTROCHEMICAL DEGRADATION (ECD)