You should have one ViewModel per View (Activity, Fragment or Custom View), with multiple LiveData, one for each logical unit. In the image one logical unit would be the user data, another logical unit would be the settings data, so you would have two LiveData exposed in the ViewModel.
These concepts can also be visible in the recommended app architecture google presented in the last Google I/O, where an Activity/Fragment has 1 ViewModel with multiple LiveData:
