methyl hydrate= methanol= alcohol in it's simple form. Arctic Cat doesn't recommend methanol in it's two stroke motors. Oxygenated gasolines, containing up to 10% ethanol or up to 15% MTBE, are acceptable gasolines. Arctic Cat suggests that whenever using oxygenated gasolines, the carburetor main jet must be one size larger than the main jet required for regular unleaded gasoline. When using ethanol blended gasoline, it is not necessary to add a gasoline antifreeze since ethanol will prevent the accumulation of moisture.
Now if you have the Z1 turbo Cat it is a four stroke turbo, and many aftermarket company's are using methanol to reduce detonation with high boost pressures.