VMware ESXi - what happens when unable to create a secondary instance of a VM for fault tolerance

Is anyone aware what would happen if VMware ESXi is unable to start back up a secondary instance of a VM configured for fault tolerance? Is there a fallback plan to try and get the VM up? Or is the VM considered failed at this point?

Initially, when a VM is configured for FT, a secondary instance is created for it. When the primary fails, the secondary instance takes over to become the primary and another secondary instance is created for that one. When there is no more resources to create another secondary instance when x failures occur, is it correct to assume that the VM is failed at this point and nothing else can be done about it? Hope that is clearer.

Thanks for any insight!