Distributed artificial reality system with contextualized hand tracking

A system includes an eyewear device configured to present content to a user. A processor is communicatively coupled to the eyewear device. A bracelet device is communicatively coupled to the processor, and includes at least one sensor configured to determine a position signal in response to movement of a user's hand. A depth camera assembly is communicatively coupled to the processor, and configured to emit a waveform into an environment of the user, and capture a plurality of optical signals from the waveform reflected off of at least one object in the environment. The processor is configured to determine a position of the user's hand in relation to the environment based in part on the position signal and the plurality of optical signals.