@abraxas in assisted open loop mode the motor is commanded to move and the encoder is used to monitor the movement. As the error between commanded motion and measured motion increases, the firmware will increase current up to the maximum configured in order to increase torque. It also uses the acceleration and velocity feedforward terms to increase motor current in anticipation of needing more when accelerating or moving at high speeds. If steps are lost (which will always be a multiple of 4 full steps) the firmware will not try to recover them. So you should always set the error threshold to less than 4 full steps.
In closed loop mode the firmware will keep on trying to achieve the current requested position. So lost steps will only persist for as long as the motor cannot provide sufficient torque to overcome an obstruction, or while is it being commanded to move or accelerate faster than is possible.
I hope this clarifies the behaviour for you.