This is correct on how it works, look at mechanics like Ultraxion Hour of Twilight soaking, H Madness bolt soaking, or even as current as Lei Shi for tanks.
It absorbs 75 percent of the damage of 1 attack, if attackDamage > absorbLimit then AMZ disappears, if not it stays for absorb limit, which is why it isn't good for soaking breaths (that do X amount of damage every second for X seconds) or Auras (same concept as breaths).