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Resist Damage (Small) is a positive status effect in Streets of Rogue. It reduces the damage inflicted on that character by 20%. This status affect is currently only available through wearable items.
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Every hit will reduce the remaining durability of the item, so essentially health is being partially traded for durability. Once durability of the equipped item reaches zero, the item is destroyed and the status effect removed. The status effect is of course also removed if the item is unequipped or dropped.