Overview
There are a few types of equipment. Weapons, staves, and totems. There is no armor.

Weapons are used by fighters to fight enemies.

Staves can have various magical effects, or deal damage.

Totems are temporary items imbued by mages that can increase your stats or provide benefits.
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Weapons
There are different types of weapons that each have their own special effect.

Greatsword: Just a basic sword. Every weapon starts as a greatsword before being expertised by a 
crafter into one of the specialized weapons covered below.

Katana: Increased accuracy (tohit). This is a good first weapon, as the increased tohit can be very
helpful early on.

Chaos: Chance to do 2x damage, with a smaller chance to do 3x damage. This is the highest damage
dealing weapon, assuming you aren’t unlucky!

Mace: Increased base damage. Maces do a bit less average damage than a chaos, but maces
are much more consistent as you aren’t relying on the 2x/3x procs.

Bladestaff: Chance to hit all enemies in your square. Any effects from dust will apply to all enemies hit.

Claw: Chance to stun enemies.

Scythe: Chance to hit all enemies in your square for reduced damage, increased chance at meat drops.
Scythes have the base damage of a greatsword, so they don’t make great weapons for general use. 
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Staves
Staves are imbued by mages, and have charges. When the charges are consumed, the staff is destroyed.
A staff imbued by a powerful mage will have more charges, with the strongest mages able to make staves 
with a huge amount of charges. 

There are various types of staves, each with their own effect. Most have a Din variant that hits all monsters
in a 3x3 around the player.

Fire: Deals damage

Poison: Deals damage over time

Slowing: Slows the attacks of the enemy

Stunning: Stuns the enemy

Tangle: Binds the enemy, preventing them from moving

Blinding: Blinds the enemy, making them less likely to hit

Spirit Summoning: Makes spirit monsters in a 5x5 around you come and attack you

Taming: Used to craft Taming Scythes for Beastmasters
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Totems
Totems are imbued by mages, and have a limited time. Higher tier totems last longer, with high
tier totems lasting multiple days. 
Totems are very important, as the increased stats can make a massive difference.
 Depending on the imbues used, they can have various effects. Only the highest tier totem of each type
will be in effect, and they do not stack.

Accuracy: Increases your tohit

Health: Increases your health regeneration

Quickness: Increases your dodge

Strength: Increases your damage

Spirit Protection: Reduces damage taken from Spirit monsters

Toughness: Reduces your damage taken from all monsters

Web Protection: Reduces your chance to get webbed in place

Life Steal: Your melee hits steal life from enemies, dealing additional damage and healing you

Focus: Prevents you from being one-hit
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Stat Totems
Stat totems are a special type of totem with reduced duration. They increase your Physical, Magical
or Creative stats. Most actions in the game that use these stats will benefit from stat totems. 

Stat totems are created by mages by imbuing a totem with Favors from the spirit trees.