Correct. Set OFF tells the apex that the default state of the outlet is off unless something changes that state. So when the pH is greater than 7 it turns on the outlet, then it turns on the co2, drops the pH to 6.99 and turns the outlet off since that is the default state.
Fallback ON can be very dangerous if the energy bar loses communication with the Apex if you are relying on the Apex to control the solenoid. If that happens it can keep dumping co2 and seriously drop the pH in your reactor and melt the media if your regulator has issues. In my experience, these problems always seem to happen at the exact same time!