I've found this to be a good indentation strategy for ERB:

```
<ul>
  <% @bookmarks.each do |bookmark| %>
    <li>
      <%= link_to bookmark.title, bookmark %>
      ...
    </li>
  <% end %>
</ul>
```

That is, indent one level for any multi-line HTML elements, and also indent one level anywhere you would normally indent in Ruby. In both cases, indent using two spaces (if Sublime isn't doing this for you automatically, let me know and we'll fix it).