Fading out position tracking

Just a thought here:

Have you tried moving the character controller to simulate the fade, then once you've reached a zero point, simultaneously disabling head tracking and returning the character controller to its previous position?

I'm not sure if the position tracking natively supports a fade like that, but this seems like a quick and dirty option.

Alternatively, and probably the better solution here would be to scale the distance within the ovr camera controller or ovr player controller down towards 0 when the condition for fade is true

Yep you're right, that works.
I transition to a camera that has position disabled, the sdk then uses the last known TrackingPosition on the camera rig so the transition is smooth.
After that I move the camera controller to -TrackingPosition to get the cameras to my desired position.

I tried moving the camera's but the sdk won't let me, they probably position those from within the native plugin, at the very end of the render pipeline.

Glad you got it figured out!

You might want to update the original post with the solution you found, so that if anyone else needs help with something like this, they can find it quickly! :)