The State Limit only validates child limits when the parent limit matches the desired state.
When the license is validated DeployLX evaluates the state of the parent limit. When the State of the parent limit matches one of the selected States then validation continues normally, validating each of the child limits. When the state does not match, then the child limits are skipped and DeployLX proceeds to the next limit.
When combined with other limits, the State limit enables very powerful conditional rules based licensing. For example, it can be used with the Activation limit to enforce one set of rules when the license has not been activated, and a different set of rules when activated.
Given the limit heirarchy in this image the following business rules are applied.