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The convention for depth values on most of the RGB-D cameras I have used is to use a 16 bit integer in units of mm. So the data format has an effective range of just over 65 meters, which is more than any depth camera I've seen.

All the bit are valid, but I don't know of any depth cameras that come close to using the full range. Which is exactly what you want because the convention will need to be changed if the range needs to change.