What happens if we install the stator and rotor with a radial mismatch which is bigger or smaller than the radial tolerances?

Resolution, repeatability & accuracy will be as specified, provided the IncOder is installed to specified tolerances. As the rotor and stator misalignment increases past the specified tolerances, the IncOder’s resolution and repeatability will be unaffected but inaccuracy will increase as misalignment increases. The IncOder will continue to operate up to a limit of gross misalignment (>1mm) when an error signal will be generated.