The ability cannot be used whilst immune to stuns. Freedom (along with all other abilities) is disabled while under its effect. Transfigure takes into account all incoming damage, including typeless damage from various attacks and self-inflicted attacks from abilities like Blood Tendrils, and even damage from dropping Nitroglycerin. It is still possible to die while the effect is in place. Transfigure's bind only disables abilities and movement, meaning that it is still possible to eat and change prayers under its effect.