Compensation can be used to make latency introduced by very long distances less noticeable.
Increasing the Compensation value actually adds a slight bit of latency to the audio you produce. But only for yourself. This means that the difference in latency between the sound coming in from your bandmates (with latency introduced by distance) and that from your own instrument decreases and any audible latency becomes less noticeable.
1) Click the Settings icon in the top right corner.
2) Check the Show Advanced Settings box.
You can now enter a manual value between 1 -30. The default value for Compensation is 6. If you feel your bandmates are not in sync with you, try increasing the value.
If you feel you are "losing sync" with your own sound that means you need to decrease the value again.
Please note that the Compensation value is not saved for your next login.