Armor Grade
Armor Grade determines how much damage your armor can absorb per dice used in an attack; the grade determines a threshold that the damage dice in an attack must exceed. Lighter armor will allow you to evade more attacks but you will be less protected if you get hit. Heavier armor will provide more protection against attacks if you are hit. Armor will protect against physical damage, i.e. bludgeoning, piercing, and slashing. It does not protect against elemental damage unless it is modified to resist that element.
For each damage dice that is equal to or lower than the specified armor grade in a successful attack, remove those damage dice. Armor Piercing weapons and ammunition treat the Armor Grade as lower when rolling damage by a specified number, such as AP II negating Light Armor (Grade 2) completely and ensuring all damage dice in an attack deal damage.
Another example without Armor Piercing would be if a player fires a shotgun that deals 4d4 damage, versus an opponent wearing Grade 3 armor, only the D4's that landed on 4 would deal damage. Let's say that 2 of the 4 D4's landed on 4, the total damage dealt to the opponent wearing medium armor would be 8.
Any additional damage resistances are factored in after Armor Grade mitigations, not before.
Unlike D&D 5e, magic weapon damage is not distinguished from regular weapon damage. Instead, magic weapons have a guaranteed amount of damage that they deal, denoted by the +1, +2, and +3 modifiers.
In addition to doubling the damage dice in a roll, on a Critical Success with an attack roll, the number rolled is unmitigated, meaning that the Armor Grade does not eliminate any dice from the attack roll. This effect only applies to player weapons, however.
Unarmored
Grade 0Adds 6 to the user's Evasion Rating
No armor mods since unarmored
Light Armor, Grade 2 (Baseline)
Grade 2Adds 4 to the user's Evasion rating
Can have two elemental resistance mod and two utility mods
Physical attacks' damage dice must individually roll higher than 2 to deal damage
Medium Armor, Grade 3 (Baseline)
Grade 3Adds 3 to the user's Evasion Rating
Can have three elemental resistance mods and four utility mods
Physical attacks' damage dice must individually roll higher than 3 to deal damage
Heavy Armor, Grade 5 (Baseline)
Grade 5Adds 2 to the user's Evasion Rating
Can have five elemental resistance mods and three utility mods
Disadvantage on stealth rolls
Physical attacks' damage dice must individually roll higher than 5 to deal damage
Can be modified to become powered armor
Superheavy Armor, Grade 7
Grade 7Adds 1 to the user's Evasion Rating
Can have seven elemental resistance mods and three utility mods
Negatively affects movement speed by 5 feet if not proficient
Can be modified to become powered armor to negate the movement speed penalty
Disadvantage on stealth rolls
Negative Evasion modifier of 2 if not proficient
Physical attacks' damage dice must individually roll higher than 7 to deal damage
Can be modified to become powered armor
Armor Piercing is a property that lowers the threshold value of any armor by an amount equal to the AP rating. Ammunition that is capable of piercing armor is more scarce, and by extension, a fair bit more expensive than standard ammunition. All melee weapons have some form of Armor Piercing.
As an example, a weapon that has AP III will count Armor Grade as 3 grades lower than it would otherwise, meaning that any damage dice in an attack that exceed the Armor Grade, when reduced by 3, will count.
Some exotic weapons and anti-materiel weapons, like the Piledriver Cannon, ignore armor completely. The Ignores Armor property is rarer than the Armor Piercing property and only specific weapons or classes get it.
For each damage dice that is equal to or lower than the specified armor grade in a successful attack, remove those damage dice. Armor Piercing weapons and ammunition treat the Armor Grade as lower when rolling damage by a specified number, such as AP II negating Light Armor (Grade 2) completely and ensuring all damage dice in an attack deal damage.
Another example without Armor Piercing would be if a player fires a shotgun that deals 4d4 damage, versus an opponent wearing Grade 3 armor, only the D4's that landed on 4 would deal damage. Let's say that 2 of the 4 D4's landed on 4, the total damage dealt to the opponent wearing medium armor would be 8.
Any additional damage resistances are factored in after Armor Grade mitigations, not before.
Unlike D&D 5e, magic weapon damage is not distinguished from regular weapon damage. Instead, magic weapons have a guaranteed amount of damage that they deal, denoted by the +1, +2, and +3 modifiers.
Critical Hits
In addition to doubling the damage dice in a roll, on a Critical Success with an attack roll, the number rolled is unmitigated, meaning that the Armor Grade does not eliminate any dice from the attack roll. This effect only applies to player weapons, however.
Baseline Armor
Unarmored
Grade 0
Light Armor, Grade 2 (Baseline)
Grade 2
Medium Armor, Grade 3 (Baseline)
Grade 3
Heavy Armor, Grade 5 (Baseline)
Grade 5
Superheavy Armor, Grade 7
Grade 7
Armor Piercing
Armor Piercing is a property that lowers the threshold value of any armor by an amount equal to the AP rating. Ammunition that is capable of piercing armor is more scarce, and by extension, a fair bit more expensive than standard ammunition. All melee weapons have some form of Armor Piercing.
As an example, a weapon that has AP III will count Armor Grade as 3 grades lower than it would otherwise, meaning that any damage dice in an attack that exceed the Armor Grade, when reduced by 3, will count.
Some exotic weapons and anti-materiel weapons, like the Piledriver Cannon, ignore armor completely. The Ignores Armor property is rarer than the Armor Piercing property and only specific weapons or classes get it.

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