Peg Relative w Offset and Limit (the Limit parameter execution is confusing)

Does someone know what purpose the Limit cap parameter in the Peg Relative w Offset serve? The IB explanation on their site is vague and i called twice into their Trading desk and they were not sure either.

For example, Peg Rel w Offset is clear - it’s a moving Limit order that chases the Mkt price whenever the Mkt price moves away from you. For example, when i submit a Peg Rel w $1 Offset Buy Order in TRADE (say, at 10am), if the mkt price is $25, the offset is set at $24 for execution.

I thought the Limit parameter is to set a worst case cap above which you don’t buy and walk away (say set Limit at $26). So, if the Offset chases the market up, it is capped at $26. However, if i set a Limit at $26 and submit at 10am, the IB systems executes the order immediately because the Mkt price (at $25) is below the Limit price ($26) - this defeats the purpose of setting an offset below Mkt price.

Secondly, just wanted to confirm that the Peg Rel to Offset has advantages over Limit and Market Orders as it can be used to to get better price than Open and to avoid slippage associated with Market Orders esp for illiquid stocks. To do this, set the submission time as 9:31am and Peg Rel w Offset $0.1 (or higher/lower, depending on the volatility of the stock), so it will set Offset at $0.1 below Open price. This also seems to have the advantage of of scheduling at a convenient time (at night), so you don’t have to be checking Open prices and setting Limit prices for each order at 9:30am. Any issues with this approach?