Transcription factor that binds to the octamer motif (5'-ATTTGCAT-3'). Activates transcription when directly bound to the octamer DNA sequence, but can form repression complexes with other proteins at the promoter site to inhibit transcription. Binds to the promoter of the vent2-B gene to activate transcription when in the presence of other BMP signaling factors also bound to the promoter. Inhibits the competence of ectodermal cells to respond to BMP during embryogenesis thereby inhibiting epidermal differentiation and promoting neural induction. Antagonizes the activity of nodal/activin signaling by forming a transcriptional repression complex on the gsc and mix2 gene promoters to inhibit their transcription, and thus maintain the undifferentiated state of embryonic cells to prevent them from differentiating prematurely. Acts maternally to inhibit vegt and beta-catenin-activated gene transcription by forming a transcriptional repression complex on the nodal/nr1 and siamois promoters to inhibit their transcription.
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