Users can specify their notification preferences for both records that they are participating in and for records that they are watching, respectively. For situations where a user is participating and watching the same record, they will receive a notification according to their Participating preference.
In this scenario, it would make sense to send the notification based on the preference (Participating vs. Watching) that would deliver the notification sooner. For example, if Participating is set to hourly and Watching is set to instant, then the notification should be sent instantly.