Self-declaration enables you to permit your customers to transact (under a certain monetary limit) under the assertion that the customer’s wallet qualifies under the Travel Rule.
The customer, at the time of the transaction, asserts/declares that their wallet complies.
SInce the Travel Rule always requires AML/KYC, you’ll use AML/KYC to set the limit that the customer is held to. For example, if the Travel Rule in your region is very restrictive over €1000, you’ll use the more relaxed AML/KYC setting for transactions under €1000.