Industrially chains are worn out it they have elongated by 1.5%, so on the 100-ish link chain most people use, discard it if it has grown by 1.5 links.
That's assuming that there isn't damage done to individual links or small sections of the chain.
Grounding a chain will grind the edges of the chain and cause it to become stiff. If you have stiff links it can cause a 3% loss in power.
Individual pins and roller can be worn more than the rest, discard it if this is so.
A stretched or worn chain is likely to either twist and snap, or jump the sprocket or hit the sprocket guard. You can normally tell if its hiting the guard because theres lots of bits of aluminium in the chain grease.
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