Here is a axle for a ZF loader. Can you see the brakes? Come to find out the brakes are in side the axle houseing, on each end and they are bathed in oil.

I took apart one end of the axle. On the left is a set of planet gears. The planetary gears gives the last gear reduction before the power flow goes to the wheels. On the right it the brake plates.

Layed out from left to right is the order in witch the brake discs came out. There are three brake plates and two brake pade discs. It works similarly like a clutch, but it is not under pressure all the time. Only when the brakes are aplied.