You definitely will need a higher resolution encoder if you need good velocity limiting in torque control mode. Your maximum gain is usually proportional to the encoder resolution, so you won’t be able to achieve a high gain like that with hall sensors. I also see some issues with your magnetic encoder mounting, I would recommend you carefully review this article: Designing for Magnetic Encoders — ODrive Documentation 0.6.11 documentation
What’s the issue with using an encoder in your final application? Why do you say that wouldn’t work?
