Output Block Clipping?

Hey everyone, I’m new to fractals with the fm3 and am blown away by it. I’ve never been so impressed by a niece of gear.
There is a bit of a learning curve to it though that I’m trying to wade through. Right now my main question is about the output block. The level meter in the output block in FM3 edit is moving into the red area pretty frequently, however the clipping meter on the front is not indicating that I am clipping. Does the red on the output block indicate clipping or is it just a suggested level? Hopefully that made sense. I appreciate the help.
 
There is definitely not a one-to-one correlation between the two. When I got my FM3, I started out with the AustinBuddy Live Gold presets, and a great many of them tickle a little bit into the red on the output block's meter, but certainly never clip OUT 1.
 
The redline in the Output block is just a target level. When you hit the red line, you’re still 12 dB away from clipping.

The Clip LED is what tells you that you’re clipping.
 
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