adaptive threshold significance level

I am trying to use adaptive threshold and set the threshold based on significance level, but while I am reading what does this do the definition of significance level is a bit hard to understand.

I am reading the performance guide from 12c database documentation, when it talks about the significance level it states this:

*Significance level thresholds are most useful for metrics that exhibit statistically stable behavior when the system is operating normally, but might vary over a wide range when the system is performing poorly. For example, the response time per transaction metric should be stable for a well-tuned OLTP system, but may fluctuate widely when performance issues arise. Significance level thresholds are meant to generate alerts when conditions produce both unusual metric values and unusual system performance.Significance level thresholds can be set to one of the following levels: High (.95) Only 5 in 100 observations are expected to exceed this value. Very High (.99) Only 1 in 100 observations are expected to exceed this value. Severe (.999) Only 1 in 1,000 observations are expected to exceed this value. Extreme (.9999) Only 1 in 10,000 observations are expected to exceed this value.*

In OEM 12.1.0.4 by default when adaptive shreshold is configured it sets 0.95 percentile for critical level and 0.95 for warning. By reading the above statement it seems t me that it is saying for warning level it will rise an warning alert when 0.05 percent of observations are above the threshold and raise a critical alert when it is 0.01 percent. Should not it be the opposite? When a higher number of observation is higher than the threshold a critical alert should be raised?

Thanks

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