The subteam is seen as a separate part of the project, which needs its own space to function. By this space we mean its own meetings, tasks to respond to, and essentially a separate project team, which is a subset of the main project team.
You define subteam members in the same way as project members. Setting up a subteam is identical to setting up regular teams, with one exception: a subteam cannot have its own "Subteams" tab, i.e. it cannot contain additional subteams.
More information about teams and subteams can be found in a separate section at this link.
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