Yep, you need at least 2 or 3 mm of gap / free play at the pivot end where the lever meets its housing. You should be able to 'feel' the free play (by hand) on the actuator arm on the clutch casing. If you push that arm forward you'll notice the difference between free play and where it engages. If you can't feel free play then you need to adjust.

This ensures you won't be in a permanent state of 'slipping' the clutch which would, if left unchecked, cause premature damage to the plates.

You can adjust the required slack by using the knurled thread nut and lock ring on the clutch lever and also at the other end of the cable (12mm spanners I think) to balance out the cable outer sheath position to give you at least 5 to 8+ mm of thread on the knurled lever adjuster bedded in its lever mount.

I think you could dial out some of your free play. Some peopes like a lot (like yours) and some like an 'instant' action, but free play of some measure is a must.

__________________
I have a lot of growing up to do. I realized that the other day inside my fort.