Because everything happens on your machine, the limits are your machine. The cut is assembled in memory before it is handed to you, so the fast mode checks before it starts rather than after. It measures the encoded bytes your range actually contains and stops if that is more than this page is willing to hold at once, and it stops if the nearest keyframe is so far back that the copy would return footage you did not ask for. It also says up front when a codec or a rotation flag makes a lossless copy impossible at all. Cutting a short range out of a huge file is completely fine, because only the range is kept.
Format support follows your browser rather than a server. Reading is broad, so MP4, MOV, MKV and WebM all open, including H.264, H.265, VP9 and AV1. Some of those cannot be displayed in the preview even though they trim perfectly, and when that happens the page tells you the preview is the limitation rather than the tool. The exact mode needs an encoder, which current desktop browsers generally provide and which the page checks for before it starts, but the fast mode needs no encoder at all, which is part of why it works almost everywhere.