@ 3sl, nytjadens
We eventually figured out the issue. Channel sends in Cubasis are only post-fader so they keep the signals wet-and-dry ratio. Once you slide the channel fader all the way down to infite, the signal should indeed not be routed to the fx.
Thats a bug which is already fixed in the next update.
@ Average Guy
The recording bar to the top of your IPad is related to the background audio setting. If you dont need it, I suggest to jump into the settings and disable it.