Ulukyn
You can be killed several meters away from a monster because of the latency.
This is because the LCT is flat (1s), regardless of distance, and is tuned for the refresh rate of any (read: far) mobs. It's a lousy flaw, but doesn't affect action/attack latency itself. Action response time is not really affected here.
Two potential options to investigate, though. Move to a smooth radial gradient for the client-side LCT on positions (assuming the peak update interval is consistent by distance). Or estimate the client-side distance on the server-side when mobs attack (less interesting, because it'll become too easy to run away).
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Kaetemi