The knife doesn't fully seat in it - it sticks out for about a quarter inch of the ricasso. It is extremely tightly fit such that the first time I pulled the knife out was more like opening a particularly tight pickle jar than it was like pulling a knife out of a sheath. The retention is 'sticky' where the knife fights you as you draw it, rather than being a sort of 'click' retention as in kydex or the best leather sheaths. You pretty much are forced to hold the sheath with your offhand to get the knife out, and I don't know that it would be possible for me to draw it from my strong side given the awkward angle my left hand would have to take to get sufficient leverage on the sheath to pull the knife out. The knife was wedged into the sheath so tightly that immediately upon drawing it, substantial sheath insertion wear is visible on the PVD finish on the blade.
This could be improved with breaking in somewhat but I doubt it'll ever be particularly good. The sheath just looks cheap, as well. It looks like it was stitched together without any molding whatsoever, so it's two neatly flat pieces of leather simply stitched together and then the knife is jammed in between. The leather was cut very close around the blade profile and there's not a lot of extra room for flex. The edges aren't really dressed at all. The leather feels of fairly poor quality. I'd basically consider the sheath to be more of a long-term storage/blade protection device than a functional sheath.
I had wondered why the kydex sheath version is $50 more expensive, but the kydex sheath looks really usable right off the bat. I will honestly probably never use it, I just love the design. The knife itself is great, but if you want it for a user, spring for the extra $50 and get the Kydex sheath, or resign yourself to having a custom sheath made.