Group

Damage Conversion & "Gain as Extra"

Damage can then be converted or Path of Exile 2 Currency gained as extra types:

First, conversion from you buy POE 2 Orbs skill gems (e.g., Perfect Strike)

Then, conversion from gear or passive tree

Rule of Thumb: If total conversion exceeds 100%, the proportions are normalized.

Damage Multipliers

Increased or reduced values are additive

More/Less are multiplicative

Critical Hit

If the skill crits, Critical Multiplier is applied:

Default: +100% (i.e., 200% damage)

Enemy modifiers (e.g., Battle-hardened) can reduce this multiplier.

Damage is Rolled

Now the damage is rolled between Min and Max:

Lucky/Unlucky modifiers apply here, rolling twice for the best/worst result.

Lucky and Unlucky cancel each other out if both apply.

Double/Triple Damage

Calculated after roll.

Triple overrides Double if both trigger.

Damage Taken As (Shifting)

At this stage, the game checks for Damage Taken As modifiers (aka "Damage Shifting"):

E.g., "40% of Physical Damage Taken As Fire"

Happens before mitigation

Removes the original damage type-so Penetration, for instance, no longer applies

Important: Damage can only be shifted once.

Mitigation

Mitigation is where most defenses kick in:

Damage Immunities

Chaos Inoculation, for example, negates all Chaos Damage.

Damage Avoidance (Type-specific)

E.g., "Chance to avoid Elemental Damage from Hits"

Still counts as a Hit, but the damage is negated.

Armor (Physical Mitigation)

Applies to Physical Hits only

Calculates based on Hit size

Additional Physical Damage Reduction stacks with buy Path of Exile 2 Currency Armor

Armor does not reduce Damage over time, except when explicitly stated