There were some questions about this recently, so I figured I'd take a few minutes and explain what's what.

1. Power is the % of Base Damage an ability deals in damage or healing. Demon is balanced internally around the concept that, all things being average, you have to throw 540 Power at an equal level character to kill it. This number factors in an all-things-being-average hit rate of 85% (which is the base accuracy of any attack that doesn't say otherwise.) The 540 number is not arbitrary: it has changed many times through Demon's earlier days, ranging between 450 and 800 at various points as I attempted to settle on the right balance. Basic attacks are all 55 Power. Abilities range both below and above this, but almost never above 100.

2. Base Damage = ( Level+10 ) * 0.615. Power is multiplied by this to get the base damage of the attack. So, a Level 6 character using a 70 Power attack would have a base damage of: (16 * 0.616) * 0.70, or 6.9.

3. Stats. Damage dealing and healing abilities are tied to a stat: either Strength or Magic. The attacker's value of this stat is compared to the defender's Level+10 for damage abilities, or the caster's Level+10 for healing. The ratio of stat vs. Level+10 determine the penalty or bonus the ability receives to its damage or healing. This starts a -25% for a ratio of 0, and increases by +25% per 1 the ratio improves. For example, if an attacker has 30 Magic and is aiming at a Level 5 opponent, the ratio is 30/15 = 2. This results in a +25% bonus to damage. If the attacker instead had 40 Magic, the ratio would be 40/15 = 2.66, about a +42% bonus to damage.

4. Resistances. If the target is immune, the damage is 0. You lose, you get nothing, good day sir. If the target is resistant, either 50% or 75% of the damage is lost, depending on whether it is a physical resistance (50% loss) or magical resistance (75%). If the target is weak, a bonus of 25% is applied.

5. Buffs and Debuffs. Various status effects influence damage dealt as well. The amounts are spelled out in the abilities for the most part. Each is applied separately. For example: If you have +25% offense and your target has -20% defense, a result that started at normal (100%) damage will turn out to be 156% damage.

6. Blankie. I named my RNG Blankie after a pet ferret I had when I was younger, and Blankie finally gets involved here in the last step. The final damage value is adjusted as much as 20% in either direction, decided completely at random.

If anyone has any questions, I'd be happy to answer them.