Can someone give me an example my native language isn't English and I wanna make sure I fully understand.

yeah me too help us guys

Leaps are jumps and bounds/boundaries are things that are around something (like a wall)

or bounds can be just an end of something like a path, where you cannot walk further

Another usage of that saying is when you are faced with actual life challenges and you go out of your way to solve it.

In order to solve these, you will leap obstacles and set your own bounds.

Another ways I see it are:

• Jumping hurdles.
• Set your own limits.

But, as always, it’s open to interpretation. Hope my answer gives you some more insight, and maybe some ideas :)

I don't think you should interpret this literally.

A leap could mean "a leap of faith" and bounds could mean  "Staying in your comfort zone". 

Leaping and bounding both refer to jumping but it is an idiom.  You can read about it here.

https://idioms.thefreedictionary.com/by+leaps+and+bounds

That's right, bounds has another meaning, as bigger steps, so running with leading steps. And the idiom is usually used to refer to when something is progressing very fast.

Hey people, thank you all so much for the explanation, it really helped me.

This might be helpful: https://www.dictionary.com/browse/by--leaps--and--bounds :)

Makes me think of the movie John Carter when he starts jumping like crazy. I’m going to attempt to make a jumping VR game. 

I like lookup up the definitions of words in the theme to see if there are any obscure meanings that could be helpful.  This theme didn't yield anything like that, but here's what I came up wtih in case it helps anyone out.

Leap:

Verb

Jump or spring a long way, to a great height, or with great force.

Move quickly or suddenly

Jump across or over

Make a sudden rush to do something; act eagerly and suddenly

Accept (an opportunity) eagerly

(of a price or figure) increase dramatically.

Nound

A forceful or quick movement.

A dramatic increase in price, amount, etc.

(in place names) a thing to be leaped over or from  (E.g. Lovers Leap)

Bounds

Verb

A leaping movement upward.

Noun

A territorial limit; a boundary.

A place within certain limits; restrict.

Leaps and bounds for me means that you overcome difficulties and you have done a big progress like that you have achieved a milestone in a project.
Good luck and enjoy the jam!

Like many people have said you could either go with the literal interpretation or not. Either way this game theme is extremely well thought out it's so vague, the options you can go with are limitless. The jam page has some hints too so i'd say this jam's difficulty is it's theme. I wouldn't recommend overthinking though. It might interest you to know that  bound means a to walk or run with leaping strides. Hope this helped! :)