I shake the hell out of it before applying it, and at least 3-4 more times while applying it. It begins as a semi-dark brown formula when you first draw it out of the bottle with the dropper. If you do that, then just hold it up to light and leave it in the dropper, it will seperate in a matter of about 1-2 seconds. It then turns into the dark brown falling to the bottom, and the top becomes yellow. I'm guessing it's a suspension mixture and it seperates very easily. This is why I think it's very important to shake it vigorously, not only once, but a few times during your application.
From the look of it, It seems the fatty acids seperate from the rest of the solution.