What is the function of MPC_HOLD_MAX_XY and MPC_HOLD_MAX_Z?

I am struggling to understand the function of MPC_HOLD_MAX_XY and MPC_HOLD_MAX_Z. Can anybody give me information beyond the sentence “Maximum horizontal/vertical velocity for which position hold is enabled” as given in the Full Parameter Reference? Usually the pilot commands a HOLD, why should the vehicle leave that state based on a velocity? And what state would it enter if the limit speed is exceeded?

I’m sure @MaEtUgR can answer that :).

pilot commands-----> velocity setpoint(EDIT: in position mode)
If we need to hold in a certain position, we need to perform position control. The premise of entering position control is that the pilot no longer inputs, and the current drone speed is reduced to demand (MPC_HOLD_MAX_XY)

Thanks for the explanation, that makes sense!