Soft cap refers to the point at which, despite being able to further increase a stat, there are no more further realistic returns (except under extreme/rare conditions).
In this game, that pretty much is just defense.
In PvE, the attacking mobs average a base to-hit of 50%, which is countered point-for-point by defense. Min. 5% chance to hit, 95% max chance to hit always. So, the most you benefit from (on average) is 45% defense.
Things like mobs over +5, and npcs with to-hit buffs or npcs using defense debuffs can make having more than 45% useful.
In PvP base player to hit chance is 75% so there the soft cap would be 70%, but players frequently have access to to-hit buffs.
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My build has 50 percent melle range and AOE defence is this over kill what is soft cap does it only happen in pvp zones? plz help