How does Lucky Hat work exactly?

[Warplord]

I have to ask a specific question - when u wear the lucky hat as Woodlegs, the treasure it "spawns" every 800 seconds - is it automatically revealed where it is? Or can it spawn in the dark undiscovered locations and be seen once u get near it?

Also if you are at water when the tick that sawns the treasure happens - does it still spawn somewhere on land or is it failed and you just don't get treasure? 

P.S.

One more thing: Do u have to continuosly use it or can u take it on and off? 

[TheUnforgivingBR]

It can spawn anywhere, just like X Marks The Spot. A little bit of Fog of War will disappear around it, so you can't miss it. Most of the time it will appear near you! Yes, you need to use it constantly; you can even give it to pigs and monkeys, there's a 66% chance that they will find something