Is it possible to use single Altivar 71 drive on two motors with one encoder in FVC mode (closed loop).

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Yes, It is possible to use the encoder with 2 motors in parallel but only if the 2 motors are MECHANICALLY CONNECTED (rigid connection and not by belt for example) and the motors are identical.
In this case encoder check on encoder is possible.
Please note that, if one motor is changed or rewinding we can't guarantee the good working