Maximum height

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This question has probably been asked before but I still have not managed to get it clear in my mind. If my maximum height is restriced to 500m, is this from the height it was launched? If I launch from an 800m mountain, and fly outwards over much lower ground, will the drone descend to 500m? And, if I have set my RTH at that 500m max, will it descend, or rise to come back if I have to press the button or it loses the connection?

Andy
 
Max altitude is 500m above the take off point. No other height above ground is considered. RTH height is also above the take off point. The Phantom will not descend to the RTH height, only ascend to that height or maintain it's current altitude.
 
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