User blog comment:NicknameMy/How I think Madred's Bloodrazor should be/@comment-10256611-20131215133308/@comment-3493296-20131215142019

The second passive damages everything, the first passive only monsters. Te third passive scales with both passives and other item passives with similar effects.

I think it does not need a cap. In a normal game, you will clear like 100 monsters, with 1/3 of them big or epic monsters. But you loose like 1/4 before you can even get that item. That would give at the end 100 bonus magic damage on-hit (50+25*2), which is a good amount for lategame.