Transitive properties should be a-cyclic, but the data on wikidata.org is imperfect, so the query endpoint should be able to cope with the presence of cycles. Currently, such cycles seem to result in a timeout, causing basic queries like "like me all cities in X" to fail. Example query:
prefix wd: <http://www.wikidata.org/entity/>
prefix wdt: <http://www.wikidata.org/prop/direct/>
SELECT DISTINCT ?city WHERE {
?city wdt:P31/wdt:P279* wd:Q515 . # find instances of subclasses of city
?city wdt:P131* wd:Q1202 . # ...located in Saxony.
}