Another way of using runtime virtual textures in UE4, inspired by Far Cry 5's decal system. This uses 1 RVT for: decal's diffuse and normal, and uses the roughness channel as a height mask. An additional RVT is used for world height to create the blend between the rock and the landscape. I also managed to get water ripples (both normal and displacement) working with only 1 channel - I chose the specular.