Burn to Redeem settings confusion

Hey! I’ve read multiple topics on the Burn to Redeem option and have no idea about how some parameters work. I need:

  1. to create a simple burn 1 token to redeem 1 new token.
  2. All new redeemable tokens to be minted to the same original contract (Where it burns from)

I’m confused about “viable tokens” option and “token’s max supply” specifically. What if i pick “All tokens”? Wouldn’t that mean that all new redeemable tokens that will be minted to the same contract will also become eligible for the burn? So that would implement infinite burn of redeemable token to oneself again and again?
Also if token’s max supply is unlimited does that mean one person who burn 1 token can redeem unlimited versions of redeemable tokens? Should i limit it to 1 if i want them to burn 1 - redeem 1?