I found a solution that works for this. For me my player has a dynamic cape with is in a rigid body sim.
the cape fly’s out of the bounds and leaves little shadow artifacts on the terrain.
Firstly it does seem to be the bounds of the skeletal mesh. on the skeletal mesh actor itself I increased the size of the bounds
So i increased the bounds by ~ +100
this alone doesn’t solve the issue because unreal is still using the original bounds of the character.
In the character BP on the mesh if you search bounds you will find a few Optimization settings.
One is the Use Bounds from Leader Pose Component this is if your character is comprised of multiple SKMs it will use the bounds of the leader SKM and ignore children.
The other two are;
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Component Use Fixed Skel Bounds - this seems to fix the issue if you have defined your bounds on the skm. This seems to have solved all my issues.
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Consider All Bodies for Bounds - this seems to take the bounds of your physics bodies into account to calculate your bounds. (In my testing this worked 98% of the time but i could still cause shadow marks with it.