It is considered a best practice to configure overlays that do not significantly inhibit your system's performance. System performance can be improved by:
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Using black and white overlays instead of color overlays. If color is required, you should save the image with the smallest color depth possible.
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Decreasing the file size of your overlays (for example, decrease the image's DPI and resolution).
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Storing your overlay images using compression.
Note:
Compressed images will be decompressed when being viewed as an overlay on a document. The image's file size will be significantly larger when decompressed.