True damage bypasses part of normal defenses. It is used by Doom’s exile zone (3 true damage per tick on players), Fury’s extra damage, and some sceptre effects (Inquisitor mark — 5 true damage after 2 seconds, Assassin’s first hit from stealth — 16% of the target’s max health).
Fury true damage does not retrigger its own passive, so the chain cannot loop forever.