Usage of user-based licenses

To migrate in future to 'user-based licensing', we have to estimate the required number of User licenses.
Therefore, I read this documentation: developer.arm.com/.../License-lifecycle-for-user-based-licensing

Especially the 'Note' paragraph seems to be relevant. This would mean the following for overall usage, from my perspective:


- We order a specific number of User-based licenses (e.g. 10)
- Then it is possible that 10 users can have a licenses activated and can use them at the same time
- When a user doesn't use his license for 7 days or longer, another user, who hasn't had a license before, can activate and use one himself
- I.e. the purchased licenses are not assigned to the same (max. 10) users

Is my understanding correct here?

Thanks

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