When you battle other characters or NPCs, you take and deal damage. We base this on a variety of factors called Damage Factors. They will limit or boost the amount of damage you do. For example, on of our Damage factors is Environment. If a Frost Titan was battling a Sand Elemental, then the Frost Titan's damage would be considerably less than usual. The Sand elemental's damage would also be boosted considering that it is fighting in its natural habitat. We also calculate this by using a complicated formula that you may not understand.