Does this mean that the ADI-2 with Auto Ref Level effectively applies pre(post?)amp gain - highest gain from PEQ+B/T+Loudness ?
It’s more simplistic:
ADI-2s internal signal processing is done with 42 bit resolution, this is 12 bit or 108 dB more resolution than the audio signal itself contains.
24 dB of this extra dynamic range is used for internal headroom, enough to prevent clipping by i.e. PEQ level boosts.
The Volume control is the final step, and Auto Reference Level does the calculations for you so you can go up to 0 dBr Volume without clipping the DAC chip.
With “Auto Reference Level” disabled, you’d need to watch the Post FX Level Meter to avoid clipping, and manually select you Reference Level - not recommend!
I tried this when I first got my ADI-2, it’s not convenient and distracts from the music.
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Auto Reference Level calculates the highest gain through the audio frequency range.
This value is used to calibrate the dBr (r = reference) value for the volume control.
0 dBr then is the highest volume that doesn‘t clip the DAC chip.