For now, it's only limited for PVE. I didn't make a limit for PVP because most players couldn't get more than 9999 HP. I will probably change that though because there are new items that can double your HP and also the Bubble status effect which was made to protect against 1 hit kills. So, I'll probably limit it for PVP too, but I'm not too worried about right now since we don't really have many players for PVP yet.

Like Testament said, there is a 'Break Damage Limit' effect that's only obtainable for Dragon Warrior's Ultimate set for now. I may make a Charm or other items for it later.

Also, maybe you remember from the Prologue; Warrior's Omnislash limit can actually break the limit. This is because I set it up to be like 10 consecutive normal attacks. So, each of the 10 attacks are limited to 9999 but the overall damage can exceed 9999 (just like in Final Fantasy 7). Omnislash is the only limit like this right now, but I'm thinking about adding others like that.