Software or virtual sensor = needs the Aquasuite service to be running.
If you want to play purely hardware you will have to connect a temperature sensor to the Octo.
but...
You could easily not care about it if you just do a little test, stress testing the computer and setting a static fan speed, to see how your loop cools the PC with zero control. It often turns out that you can simply leave your fan curves as they are, and only set the fallback % value to a fan speed that's enough to cover your ass no matter what happens.. booting, eventual crash of the service etc..
Just as an example on my rig, a fan fallback speed of 40% PWM is more than enough to cool the PC in all situations. That's what it runs at boot.
If you need to run the PC without windows though, you'll want a sensor hardwired to the octo, and your fan speeds directly controlled by that.
I didn't notice that there is a fallback value under fan curve. It should be enough for me. Thank you for nice tip!