2 caps: 1 for things that are charged for existing (e.g. S3 storage, RDS, EBS, EC2 instances) and 1 for things that are charged when you use them (e.g. bandwidth, lambda, S3 requests). Fail to create new things (e.g. S3 uploads) when the first cap is met.
Does that mean fail to create rds backups? And that AWS needs to keep your EC2 instance and RDS instance running while you decide if you really want to pay the bill?