If Geralt drops below 80% of HP he slowly starts dealing less damage based on current HP.
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This mod is intended to make combat a bit harder, if you have between 100-80% of HP no debuff is applied and anything below starts taking away some part of the damage that you deal, both signs and swords, the less hp you have less damage you deal.
If you don't like the amount of damage that is taken you can open the script that is in the mod folder and go to the line 801, you will find instructions there, it's easy, you just have to change a couple numbers.
Rough estimation what % of damage is taken based on HP:
80-40% HP= ~20-40% less damage 40-20% HP= ~40-65% less damage 20-0% HP= ~65-100% less damage