When a player loses, both spirit and host will cease to exist (be sent to the Shadow Realm in the dub). However, Yami Marik would not be affected if he lost, since he was an alter ego that Marik created himself, whereas Yami Yugi is a completely different spirit living dependably inside Yugi's body with Yugi's own spirit.
Turn 2: Yami Yugi
Yami Yugi draws "Exchange". He then Normal Summons "Queen's Knight" (1500/1600) in Attack Position. "Queen's Knight" attacks and destroys "Vampiric Leech". Yami Yugi Sets two cards.
Turn 3: Yami Marik
Yami Marik draws. He then Normal Summons "Juragedo" (1700/1300) in Attack Position. "Juragedo" attacks and destroys "Queen's Knight" (Yugi 3500 → 3300). Yami Marik then Sets two cards.
Turn 4: Yami Yugi
Yami Yugi draws. Yami Marik then activates his face-down "Left Arm Offering" to discard his entire hand and add "Monster Reborn" from his Deck to his hand. Yami Yugi then activates his face-down "Exchange" to force both players to take one card from their opponent's hand; Yami Yugi takes "Monster Reborn" from Marik's hand while Yami Marik takes " De-Fusion" from Yami Yugi's hand. (Other cards that were shown in Yugi's hand at this point include "King's Knight", "Kuriboh", and "Ragnarok".)
Yami Yugi then activates "Monster Reborn" to revive "Queen's Knight" (1500/1600) in Attack Position. Yami Yugi then Normal Summons "King's Knight" (1600/1400) in Attack Position. Since "Queen's Knight was on the field when "King's Knight" was summoned, the effect of "King's Knight" activates, allowing Yami Yugi to Special Summon "Jack's Knight" (1900/1000) in Attack Position.
Turn 5: Yami Marik
Yami Marik draws. He then Sets a card (Yugi's "De-Fusion"). Yami Marik then activates "Card of Sanctity" to make him and Yugi draw until they both have six cards in their hand (Yami Marik draws six cards, while Yami Yugi draws four cards). Yami Marik then switches "Juragedo" to Defense Position.
"Slifer" attacks "Juragedo", but Marik activates his face-down "Dark Spell Regeneration" to activate the "Monster Reborn" from Yugi's Graveyard as his card, allowing Marik to revive "The Winged Dragon of Ra" (?/?) in Defense Position. Yami Marik then transforms "The Winged Dragon of Ra" into Egyptian God Phoenix (0/0).
While not outright stated, Yami Marik is cheating with his rules. Despite the fact the Yugi is not in control of his body and is a spirit at the time, if the Pharaoh loses, Yugi's body gets destroyed as well.
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