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Component image
AvatarLiveIndicator component as seen in the Scene Inspector
The AvatarLiveIndicator component is used to show or enable a slot (usually a visual) to let other users know that you are live. This activates from the streaming camera control panel, specifically the "Mirror to display" button.
Usually this is used with the Camera, especially when streaming. This is also already setup along with the Nameplate and positioned on it (however, this can be customizable).