difference between timeout/proxy_timeout

[Mansoor Peerbhoy]

hello, 

what's the difference between timeout and proxy_timeout directives for mail ? 
from the documentation, what i can tell is that timeout is the inactivity timer between downstream client and nginx 

whereas proxy_timeout is the inactivity timer between nginx and upstream server 

what about when the proxy connection is established (i.e. route lookup has taken place and the user has logged in) ? 
which timer of these two is in force then ? 

thanks 
mansoor 

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