This paper explores the optical limiting (OL) characteristics of an input probe field within a closed-loop asymmetric coupled quantum well (ACQW) system. Our research reveals that the application of Terahertz (THz) coupling laser fields can induce the OL behavior within the THz domain in the ACQW. The study demonstrates that revers saturable absorption arises through cross-Kerr nonlinearity, contributing to the emergence of OL behavior. Additionally, it is shown that the self-defocusing is induced concurrently within the system, further enhancing nonlinear refractive OL effects. Furthermore, it is revealed that the properties of induced OL can be manipulated by adjusting the characteristics of the applied fields. The discovered outcomes hold potential utility in safeguarding sensors and detectors operating within the THz band.