Load balancers are typically deployed in either inline or one-arm mode.
In the inline mode, the load balancer is in the traffic path between the client and the server. Clients and servers must not be connected to the same tier-1 logical router. This topology does not require virtual server SNAT.
In one-arm mode, the load balancer is not in the traffic path between the client and the server. In this mode, the client and the server can be anywhere. The load balancer performs Source NAT (SNAT) to force return traffic from the server destined to the client to go through the load balancer. This topology requires virtual server SNAT to be enabled.
When the load balancer receives the client traffic to the virtual IP address, the load balancer selects a server pool member and forwards the client traffic to it. In the one-arm mode, the load balancer replaces the client IP address with the load balancer IP address so that the server response is always sent to the load balancer and the load balancer forwards the response to the client.