Damage Taken As (Shifting) At this stage, the game checks for Path of Exile 2 Currency 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. Step 4: Mitigation Mitigation is where most defenses kick in: 4.1 Damage Immunities Chaos Inoculation, for example, negates all Chaos Damage. 4.2 Damage Avoidance (Type-specific) E.g., "Chance to avoid Elemental Damage from Hits" Still counts as a Hit, but the damage is negated. 4.3 Armor (Physical Mitigation) Applies to Physical Hits only Calculates based on Hit size Additional Physical Damage Reduction stacks with Armor Armor does not reduce Damage over time, except when explicitly stated 4.4 Non-Physical Mitigation Resistances (Fire, Cold, Lightning, Chaos) Apply to elemental types Cannot be penetrated below 0%, though curses and exposure can drop them into buy POE 2 Currency negatives Resistances and Damage Reduction are separate layers, both capped at 90%