SMB scale-out file shares are created on CSVs. You can create any number of shares on the CSVs based on your requirements. However, the underlying CSV size dictates the total usable disk space available for the file shares. When creating the file share in the Failover Cluster Manager select SMB Share — Applications.
As part of the file share configuration, you have an option to select the Encrypt data access check box. Selecting this check box allows you to use SMB Encryption for the specified file share if you require. Using SMB encryption has a significant performance overhead.