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V-Ray for Unreal support the rendering of native Unreal Materials and Material Instances. Materials are used to calculate how light interacts with surfaces. These calculations are done using incoming data that is input to the Material from a variety of images (textures) and math expressions, as well as from various property settings inherent to the Material itself. Each time a change is made in the material it has to recompile which can be very time consuming depending on the complexity of the shading graph. Material instancing is used to change the appearance of a Material without incurring an expensive recompilation of the Material using predefined parameters. For more information on Unreal Materials and Material Instances check the Materials documentation.