Under the back-end retention policies, the following file versions are stored in the cloud:
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All versions of a file backed up within the current day.
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The latest version of a file backed up each day for the past six days from the current date.
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The latest version of a file backed up each seven days for the past 89 days from the current date.
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The latest version of a file backed up each calendar month for the past calendar year from the current date.
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The latest version of a file backed up each calendar year past the current year.
In short, the more recent the file, the more versions of it are stored in the cloud.