Please explain what happens when the private user limit is reached

Our account had to be changed to a lower level and now I’m running out of private user limit. I’ve searched, but I’ve been unable to find any information on what happens when you have a user who’s over the limit allowed tries to log into the app. Can anyone tell me what happens then?
We are allowed 10 private users. However, we have 16 relatively active users. What’s going to happen when the 11th user goes to use our app?

The 11th user won’t be able to sign in.
I’ve never seen it, but I believe that when they try they’ll see a message indicating that the App has reached the user limit.

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