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Damage Immunity is applied first. This is treated as a % reduction of a damage type. If obtained from items [very rare], this can potentially stack additively to 100%. This can work either in a positive or negative direction, 'increasing' or 'decreasing' something's % resistance to a particular damage type. An example would be, 'Damage Immunity 50% [Slashing].
Damage Resistance is applied next. This is a flat resistance to a particular damage type, indicated by the - that comes after the / . So an example would be '20 / - Slashing Resistance'.
Damage Reduction is applied last. This can either be:
- A flat reduction of damage, e.g. 9 / - Damage Reduction from 3 Epic Damage Reduction feats,
- A reduction of damage up to a particular enhancement of weapon, with no limit on damage absorbed. E.g. 5/+1 from Ghostly Visage [which absorbs 5 physical damage from incoming weapons that are under +1 enhancement]. This can also be written as 'Damage Reduction +1 Soak 5 Damage'.
- A reduction of damage up to particular enhancement of weapon, that absorbs a finite amount of damage points. E.g. 10/+5 , up to 100 points from Stoneskin. This spell absorbs up to 10 damage from weapons that are +5 or under, and expires once the spell wears off or has absorbed 100 points worth of physical damage.
Damage Reduction also has an interaction with Creature Weapons [claws, beaks, etc.]: In the case of Damage Reduction that applies an x/+y value, the Y Value is used for creature weapons [e.g. claws] to bypass Damage Reduction. So say you were a mage that cast Stoneskin [10/+5] on a Summoned Bear [uses claws]. As well as that Bear being given Damage Reduction, their claws are also treated as ‘+5’ for the purposes of bypassing Damage Reduction ... meaning that they can now bypass opponents with Stoneskin on them ! [+5 class bypasses 10/+5 DR, meaning that no damage is reduced].
SO! Why is the order of these 3 important? Well, if you were say a Risen Lord character, then you can add all of the numbers up to attain some frankly ridiculous resistance to Physical Damage.
Say one has a Risen Lord Character with a Greater Swordsman's Belt [20/- Slashing Resistance], and Epic Damage Reduction 3 [9/- DR]. Risen Lords are 50% Immune to Slashing and Piercing Damage, and also have 15/+3 Damage Reduction.
Adding all of these together, this particular character could absorb (20+9)x 2 = 58 points of Slashing Damage every hit , or (20+15)x2 = 70 points of Slashing Damage every hit from weapons/spells with less than +3 enhancement.
This is due to the order at which things are calculated [Immunity lowers damage by half, then Resistance and Reduction apply after that]. This is not the maximum amount of physical damage that a Risen Lord can potentially absorb either: Dwarven Defender can be added to the mix to increase things even further!
Granted, there’s other things to worry about as a Risen Lord (not being able to use Healing potions/kits which creates reliance on Regeneration gear, Spell Damage, etc.), but Physical Damage from Slashing and Piercing sources is usually not one of them. :)
Lots to think about, hopefully this makes sense either way. :)
https://nwn.wikia.com/wiki/Main_Page
If you've got other NWN mechanic/class/stat/etc. related questions, then NWN wiki is the place to go. Pretty sure NWN EE and NWN 1 are mechanically the same, so the knowledge should transfer over to EE.