I believe we’d need to know what gpu you have first… but keep in mind that SK looks at the vram from the gpu, well, more specifically, the statistics shown are graphics memory actively used by the game (resident vram) vs vram the driver can dedicate to the game.
I imagine you got a gpu with 8gb of vram, but your current budget apparently is 7 and you’re exceeding it for at least a moment (or reaching the point in which sk warns by default – it actually warns before you reach max…) and I guess 16gb is your ram, which is separate from this…
also, In the following forum thread I posted more about SK’s vram gauge and how to adjust or disable the warning -