The permissions are assigned during the group creation and can be reviewed and adjusted any time later in Permissions.
There are a few scenarios of permissions inheriting when adding new documents or managing an existing structure.
Creating a new folder
In the case of an existing folder structure, when a new folder is being created, it automatically inherits the permission of the parent folder.
For example, if the folder is created in the root folder with the permission "No access", it will also be hidden from the users unless you change its permission.
Uploading new documents
All newly uploaded documents automatically inherit the permission of the folder they are being uploaded to.
Copying and moving documents
By non-administrators
When non-admin users move or copy documents, their permissions are automatically inherited from the destination folder.
By administrators
Administrators can decide what to do with permissions for moved and copied items:
No access: documents are hidden.
Keep current: retain existing permission levels.
Inherit: set permissions of a destination folder.
Restoring from recycle bin
Upon restoring, project administrators can decide on permissions of the restored items:
No access: documents are hidden.
Inherit: set permissions of a destination folder.