Compositing Flag

Composites the layers in either Layer Shader node or Layer Texture node. Each mode calculates the transparency flag differently.

For more information, see Layered textures with the Layered Shader node.

Layer Shaders

The color and transparency are processed and passed together to the Layer Shaders. In other words, transparency is taken into consideration to modify the color before the color is reported to the Layer Shaders.

Layer Texture

Color and transparency are passed separately to the layered shader. In other words, color is reported to the Layer Shaders with no consideration of the transparency setting; transparency is passed as a separate channel. The color and transparency are then composited. However, this can lead to dark halos where the negative space of the alpha channel is represented.