The help text tries to explain this:

"indicates how many addresses will be created for each subnet."

So if you have 2 subnets,  you will get 1 ip for each subnet, so you get a
total of 2 IP addresses reserved for each device.

We currently have 2 built-in subnet division rules:

1. device: the rule is triggered each time a device is created
2. vpn: the rule is triggered each time a device gets a particular
VPN-client template assigned

I hope this helps.
Federico

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