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Why is the cluster tolerance for a topology smaller than what was specified?
Just as topologies have a default cluster tolerance, which represents the minimum distance between the vertices of features, a topology also has a maximum cluster tolerance. The maximum cluster is defined as six orders of magnitude above or 1,000,000 times the minimum or default cluster tolerance for the topology.
If the specified cluster tolerance is larger than the maximum cluster tolerance for the topology, the maximum cluster tolerance is used by default. This can be confirmed by opening the topology properties following the creation or modification of a topology.