Limit Breaks are powerful attacks that require a full Limit bar to perform. The Limit bar grows as you perform any action, be it dodging, attacking or casting spells.
Performing a Limit Break takes no Energy, Mana or Stamina.
The name Limit Break is a homage to the Final Fantasy series. The original idea was that you gain new Limit Breaks in various stages of the main story. As the game is right now in its unfinished state, you get all spells at the end of the game at the foot of the Mogwai Mountains.
The Player's Limit Breaks are the following:
Touch of Fury
A powerful attack.
A powerful attack that inflicts 'Imbalance' on the enemy.
Multiple swift attacks in quick succession (10 in total).
Many, many, many swift attacks in quick succession (36 in total). Potentially the strongest attack in the game.
Caleb's Limit Breaks are the following:
Slows the enemies' stamina, hastens yours.
Two powerful attacks.
Armor piercing attack.
Shapeshifts Caleb into a bull-like demon, giving him massive power and speed and a new set of abilities.
While shapeshifted as a demon - if you managed to raise a full Limit bar before turning back to normal, you can cast Oblivion. Inflicting massive dark damage to the enemy with a chance for Sudden Death. Is Caleb's strongest attack.
Some enemies also have Limit Breaks:
Gornaks can cast Recovery and heal themselves while in a defensive state.
Dion can cast Shadow Strike and attack you from behind.
Carrion Hounds can cast Poison Fang, dealing damage and poisoning you.
The Golden Demon can cast Confusion and Blind.