Adam
Picture a stack of wet clutches like in a motorcycle. We have a hydraulic spring loaded apply piston(usually aluminum) springs are there for return of the piston after apply, but also to regulate timing so they don't come on too fast (TCMs hate that). Clutches are alternately stacked (steel plate at the bottom against the apply piston) then a friction plate ( a steel plate with paper friction material on each side). A slip occurs when there is not enough pressure on the apply piston to lock the clutch stack, or there are not enough clutches in the stack to hold current torque being applyed. Low fluid or the kind of fluid you use has an effect. Clutch packs are rated at the factory to hold a certain torque application plus 10 percent. What we do with our trucks far exceeds what the factory built in for safety. Adding clutches helps alot ; example ( C3 clutch pack has 4 clutches, by adding one friction and steel, you just increased clutch holding by 25 percent). Adding pressure also helps in locking clutches better, but touchy in the Allison because of back fill. (we will do that another time). You will feel a slip when the engine rpm goes up and the vehichle does not respond accordingly. Slips start as little flares( slight rpm zip and bump before a shift). The zip starts to get worse and becomes a slide, then becomes a nuetral condition after shift. Sorry if i took too long, hope this helps.
mike