Does it work as a gateway or as a pass through device, which replicates the router's configuration? If it were a gateway, would it support both static and DHCP configuration?

Also, how is device configuration handled? Would it be done from behind the router or through the cloud? What configuration options will be made available?

From a functional perspective, the CUJO is a "network sensor" and a firewall, in one. The sensor part works by sampling metadata from your network connections and we send that to our CUJO cloud via an encrypted channel. In the cloud is where we do the heavy lifting. We test this metadata for participation in virus command-and-control servers, we test it for participation in (or victim of) DoS attacks and other anomalies, we test for man-in-the-middle attacks and we use behavioral analysis to determine if your IoT devices are falling out of its normal profile. When we detect any malicious activity, we send a specific firewall rule from the cloud thru the secure channel on your CUJO, where it blocks the device in your home to whatever rogue server in the wild that its talking to. At the same time, you are notified via the companion mobile app that we detected a threat. From the app, you can override the block if you find it necessary. In this way, the user is always in control.