I'm pretty sure that the theme is hell (which is optional) and the limitation is announced when the jam starts. So you're right, but you NEED to put the limitation there. The limitation might be something like "only mouse" or something. But I'm not an expert so if its wrong then sry.
the theme is like "oh make a game about jelly" and you make a game about some gummy bois in a jelly castle but you can also make a game about someone eating gummy bear
a limitation is like "cool but the game has to have a gun" so you HAVE to add a gun in the game