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A hoop that is larger than any design your machine will recognize is called a multi-position hoop. It’s tempting to think that you can just load and use a large design now that you have a large hoop. This is not the case unless your machine already has the capability to read larger designs. A multi-position hoop allows you hoop once and stitch designs (or one large design that has been split into multiple files) in each position so that when complete, you have a big design.
Lisa Shaw makes this clear in her blog on Multi-Position hooping and how to split designs for the 5x12 PES hoop.