Edge Delivery Services, where would we place images and assets

While adding images, mp4 (videos), pdfs, and other documents, how would content authors use the document base authoring to upload images like https://ext-images--franklin-assets-selector--hlxsites.hlx.page/external-images-example?view-doc-source=true, and are these saved into the dam?

Our AEM customer has a contract with AEMaaCS for 4 years, and its free to use EDS, just wondering where are the images actually placed.