How does the number of outputs per license work?

If I have a license with 4 outputs on it does this relate to the video outputs on the graphics card? Or does this relate to the max resolution that the canvas can be? e.g. 4 x 4K outputs so the canvas can be 4x the size of a 4K output?

Slightly confused about how this works.

1 video output license is 2048x1200 amount of pixels on canvas. It can be any aspect ratio, it counts only total number of pixels.
In some cases, for example when using wall controllers, canvas resolution can be higher, and Display nodes are used to count “licensed” pixels, so part of canvas can be not licensed, and is not rendered. For example, if you have 6 outputs, but using 2 x4 wall controllers, and you want to create fullscreen canvas to maximize performance

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