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So, if i understand this correctly then, depth simply sets a limit to how much compression or expansion can happen to a given signal right?
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Correct.
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So does that mean that the Pro multiband dynamic has a ratio in which it compresses and expands signals that is nonadjustable? and instead uses deapth as it functions in a generally similar way?
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No the ratio still functions as usual, depth is just a nice extra. You can check the depth setting using the Avid channel strip (non-multiband), it gives a much more understandable visual feedback on how it works.
Beware though Pro Multiband is not using phase linear filters and has audible side effects around the crossover frequencies. I tried it for mastering but it didn't take. Too bad though, other than that it's very nice.