Pretty much.
You can decide how many levels of tesselation there are in UE, but it’s very temperamental it seems and stops at a rather low level.
I just had to make my base mesh have enough polygons to where the tesselation could do the rest to where displacement would work decently well, which sucks because that means my mesh has a much larger amount of polygons than it needs to in the distance. (I can’t use LODs as it’s an omnipresent water plane, it will also always be close)
If you get sharp spikes, that suggests not enough polygons to work with. Unlike normal maps which fakes deformation, displacement *actually, *deforms the mesh and needs enough details as to where you would be able to actually model those details in yourself.