Yeah you should not have a gap like that. Is the headset from Longteng? My "headset" included with the LTK-266-SL came with crappy bearings, a useless crown race, a good compression plug, and no c-ring. i ended up ditching all of it for proper FSA ACR headset. Honestly I advise doing the same - not necessarily FSA, but whatever works with your desired cockpit (Deda, Cane Creek, etc)