This is what I think I know:

On an amplifier, if you have volume and master volume, a high setting on master (with a low setting on the volume)will provide a "clean" signal and a low setting on master (with a high setting on volume) will produce a distorted signal.

This should also apply to an instrument going into a sound board. Trim adjusted right below the peaking level should allow for individual slider volume to be adjusted to any level without distortion. However, individual channel volumes higher than the overall board's master volume will result in distortion.

OK, that being said, what about acoustic instruments with the "on board" electronics? It would seem you would want the volume on the instrument turned all the way up for the non-distorted sound. Except the folks I play with insist that 3/4 is the preferred setting for clarity (And that provides them more flexibility to turn up or down as the situation permits).

So, does the pre-amp associated with on board electronics inherently distort at full volume settings?

Ed