Damage

Damage is fairly straight-forward: all effects that increase or decrease damage, such as critical hits, upgrades, or armor, are multiplicative. All damage will also temporarily stop health regeneration.

Damage Types
There are five types of damage: Your armor will provide an armor value for each type of damage; incoming damage is calculated independently for each type.
 * Physical
 * Thermal
 * Electric
 * Corrosive
 * Entropic

Critical Hits
Each attack has a chance to critically hit, dealing increased damage. There are two numbers relevant to critical hits: critical hit chance, which is the percentage chance of inflicting a critical hit (increased by agility), and critical hit damage, which is the percentage of normal damage dealt by a critical hit (increased by perception). Defaults with no attributes are 10% critical hit chance and 125% critical hit damage.

Damage Calculation
Damage consists of several components: base damage, damage bonuses, and armor. Base damage is your weapon damage (dependent on type of attack, i.e. primary or secondary, combo, etc.) plus any bonuses from your skills (for example, if a skill deals 50 bonus damage, that is applied at this step). Damage bonuses are bonuses from might, upgrades, or critical hits. These are all applied multiplicatively: for example, a 10% damage bonus from might, 5% damage bonus upgrade, and 175% critical hit would give you: 1.1*1.05*1.75 = ~2.02 times normal damage. Armor reduces damage. 0 armor means you will take full damage from an attack (i.e. nominal damage), and every 100 points of armor will cut that damage in half. This means that armor has diminishing returns; 100 armor will reduce a 1000 damage hit to 500, while 200 armor will reduce it to 250.

The total formula for damage is: $$base\_damage*damage\_bonus \over 2^{(armor/100)}$$