You use the ring that's on the top of your picture. The other ring won't allow the collar to work properly.
Fit can be funky with some dogs. Some tense their neck muscles when you put it on and it appears too tight but it's perfect once they relax a bit. Other dogs are simply between sizes. I'll either go to the smaller prong or just deal with the looser fit on those dogs.
We have some training scenarios where we don't want the collar to be live. In that case, we clip onto both rings. Otherwise, for typical usage, you would clip onto the free (Top) ring.
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