Github user mxm commented on the pull request:

    https://github.com/apache/flink/pull/859#issuecomment-119883278
  
    Typically, programs can allocate as much memory as they like. We only take 
a fraction of the free physical memory for the manged memory. We could also 
take only half of the physical memory. Or, alternatively, fail with an 
exception that the maximum memory for the JVM is not set (-Xmx is missing). In 
my opinion, it is ok to take a fraction of the physical memory for local 
execution.


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