You probably have air in the line. I've heard that with the Magura Hymec conversion kits the slave cylinders are a weak design and tend to start leaking.. Once the fluid goes down in the master cylinder, bingo, air in the line. I recommend taking it to a KTM dealer who knows how to bleed these things properly and they can have it fixed for you in fifteen minutes. Once they are done, when you have the adjustment screw turned all the way in, the clutch lever should not have much/any slack from being fully extended until where it starts to work.
I had to bleed mine a couple of weeks ago, when it had air in it, it felt like the adjustment screw was half way out although it was indeed turned in all the way (where I prefer it to be).