Cascading Business Rules

Cascading Business Rules

I would like a better understanding of how business rules work when cascading is turned on.
Example:  I have 6 rules.  Rule 3 has cascading turned on:
 
Ticket is created
      Rule 1 does not apply > move to Rule 2
      Rule 2 does apply > changes are applied and ticket moves out of rules
 
Ticket is created
      Rule 1 does not apply > move to Rule 2
      Rule 2 does not apply > move to Rule 3
      Rule 3 does apply     > move to Rule 4 (because cascade is turned on for Rule 3)
      Rule 4 does not apply > (what happens to the ticket now? )
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