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 No need to be in the yellow, really. Outputs are the same as inputs. What you feed to the unit is what you get out.If there is any distortion, it may be at converters IF the signal is really loud or it could be somewhere inthe algorithm. Depends on the preset. You should do tests with the THRU preset.

You converters indicate distortion because they do not have the headroom the H8000 has!

All of this is true for ANALOG connections only! Digital connections use the LED in the traditional way.