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 negatives
Resistances and Damage Reduction are separate layers, both capped at 90%

Step 5: Damage Taken Modifiers

Now we apply modifiers to how much of that mitigated damage ly taken.

Order:
1. Flat Damage Taken (e.g., Ashrend)
2. Increased/Reduced Damage Taken (e.g., Shock, Wither)
3. More/Less Damage Taken (e.g., Bulwark, Dancing Mirage) - multiplicative

Step 6: Stun

After damage is finalized, the game checks if the Hit causes a Stun.

Must exceed the target's Stun Threshold
Player threshold = % of max Life
Strong monsters have custom thresholds
Physical & Melee Hits get a 50% multiplier for poe 2 trade site Heavy Stun buildup
Note: Players cannot be "Heavily Stunned."