Which two statements about VXLAN are correct? (Choose two.)

VXLAN (Virtual Extensible LAN) uses VXLAN Tunnel Endpoints (VTEPs) to encapsulate Ethernet frames into UDP packets for transport across an IP underlay network and then decapsulate them at the destination. This allows for extending Layer 2 networks over a Layer 3 infrastructure. VXLAN uses a 24-bit VXLAN Network Identifier (VNI), which provides up to 16 million unique VXLAN segments, significantly more than the 4,096 VLANs supported by 802.1Q. VXLAN inherently supports host mobility by allowing VMs to move between hosts in different Layer 2 domains while maintaining their IP address. While VXLAN extends Layer 2 overlays, it typically operates over a Layer 3 underlay, not exclusively a Layer 2 underlay.