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Correct. So as long as you have long tether you can be in the same grid. But as stated if the host leaves the grid they rubber band to the host. It’s best if you plan to leave in a ship just have everyone on it avoid any glitches.
I wasn’t a fan of tether on Ark on one Island. But this hasn’t been issue for me so far. I also have a dedicated server but it’s not 15x15. I hope that becomes an option with one server.
It's under the General options tab (closer to the bottom than top) called: Non-Dedicated Host Tether Distance
2 years later, basically.