  We develop a model of the white dwarf (WD) - red dwarf (RD) binaries AR Sco
and AE Aqr as systems in a transient propeller stage of highly asynchronous
intermediate polars. The WDs are relatively weakly magnetized with magnetic
field of $\sim 10^6$ G. We explain the salient observed features of the systems
due to the magnetospheric interaction of two stars. Currently, the WD's
spin-down is determined by the mass loading of the WD's magnetosphere from the
RD's at a mild rate of $\dot{M}_{WD} \sim 10^{-11} M_\odot $/yr. Typical
loading distance is determined by the ionization of the RD's wind by the WD's
UV flux. The WD was previously spun up by a period of high accretion rate from
the RD via Roch lobe overflow with $\dot{M} \sim 10^{-9} M_\odot $/yr, acting
for as short a period as tens of thousands of years. The non-thermal X-ray and
optical synchrotron emitting particles originate in reconnection events in the
magnetosphere of the WD due to the interaction with the flow from the RD. In
the case of AR Sco, the reconnection events produce signals at the WD's
rotation and beat periods - this modulation is due to the changing relative
orientation of the companions' magnetic moments and resulting variable
reconnection conditions. Radio emission is produced in the magnetosphere of the
RD, we hypothesize, in a way that it is physically similar to the Io-induced
Jovian decametric radiation.
