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In brightest day / In blackest night / No evil shall escape my sight / Let those who worship evil's might / Beware my power--Green Lantern's light!
On the Dungeon side 4 darkness would be 8 penalty, but would be in the non-typical case where a card allows you to attack a Monster one rank deeper than the deepest rank (which is rank 3 on the Dungeon side).
On the Wilderness side, where you do have a rank 4, the penalty would be 4 (-1 per darkness).
This is correct.
The dungeon side has 3 ranks, and each point of darkness causes a -2 penalty in combat.
The wilerness side has 4 ranks, and each point of darkness causes a -1 penalty in combat.