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is there a limit on these setups either in the rule book or just common sense
There is no common sense, except that it is an emergent property in the Darwinian model.
The CTT regulations only stipulate the 35cm minimum width, nothing else for road bikes. There are a couple of position limits for tribars, but they are based on historical positions and nobody modern is going to be troubled by them, and they're never enforced anyway.
There is a general provision that a bike has to be capable of being ridden safely on a public highway open to general traffic, but the usual way to be discovered violating that regulation is to crash, so we're back to Darwin
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Ah of course Reg. 14.a how could i forget 🙄
Every time you ride a CTT event, you sign a form stating that the event will be held under the Rules and Regulations of Cycling Time Trials as shown in the current Handbook and confirm that you are conversant with such Rules and Regulations and undertake to abide by them
It's surprising (or not, given that modern people have been programmed to accept terms without reading them) how many people have never read the regulations before taking part.
Well, they already have that covered with Reg.14a. Head-down is already a DQ-able offence on the very rare occasions that anybody bothers to check for it, and seems to be neither more nor less likely if tribars are banned.