You want it super tight.
Your wheel and tire do not look centered to me, could be the angle the photo was taken, but it looks like it is pointed a bit to the left.
As a starting point I will lay a yardstick on the belt, inline with the edge the belt and run it back far enough to cross both edges of the tire. Adjust positioning until there is equal space between both sidewalls and the edge of the yardstick..
Tighten the axle bolts, rotate the tire and see how the belt tracks.
I took an old unused (aren't they all) treadmill l and reversed the wiring so it would run backwards. With the rear of the trike on jack stands and the transmission in neutral, I slide the edge of the treadmill under the rear tire so that the treadmill will run the tire. This allows me to adjust tire alignment as it runs in a safe manner.
Make sure the belt has no opportunity to touch the side wall. The belt is much stronger than the sidewall of the tire and will chew it up risking a sidewall blowout
![[Linked Image]](https://www.tm-img.com/images/2021/05/30/treadmill.jpg)