There are three types of Bypass systems
1,2 and 3 valve
You have a one valve system
The valve, with the handle pointing toward the Water heater (or away from it) is "USE" and with the valve pointing toward the HOT is "Bypass" there is a check valve (Sorce of many problems) in the hot water outlet.
THe valve is what we call a 3-valve, why I don't know since it only sends water TWO different ways.
The two valve system replaces the check valve with a 2nd 3-way
The 3 valve system uses all quarter turn, one in the bypass line.
But you have the one valve system.