UITRACE and UIFLOOD are two special addresses that are suffixed with pseudo-SSID's, e.g. "TRACE4-4" and "WIDE2-2". These addresses can digipeat several times. The first digit specifies the maximum number of hops, and the second is the hop counter, which is decremented each time the frame is digipeated.
These two addresses behave slightly differently however. When a frame is digipeated on the address specified by UITRACE, each digipeater inserts its own callsign in the digipeater list and decrements the "SSID". Frames digipeated on the UIFLOOD address have their SSIDs decremented, but the digi doesn't insert its own callsign.
For the sake of consistency with UI-View, UITRACE defaults to "TRACE", giving TRACEn-n digipeating, and UIFLOOD defaults to WIDE, giving WIDEn-n digipeating.
However, according to the APRS "New Paradigm", RELAY, TRACE and WIDE are deprecated, UITRACE should be set to "WIDE", and UIFLOOD should be set to a "state" code (e.g. "GBR" for the UK). These addressses may be specified in XROUTER.CFG.
One of the main justifications for the new paradigm was the fact that some of the older digipeaters would repeat the same packets over and over. This does not happen with XRouter, due to its dupe prevention measures.
Not everyone agrees with the "New Paradigm, so the choice of which features to enable is left you you.