Damage types refers to different damages that can be dealt in-game.

I. Physical Damage: Refers to damage dealt via physical attacks such as normal attacks and with abilities that inflict physical damage.

*Killer effects (e.g. dragon killer) are enabled by abilities and are stackable up to a maximum of 300%.
*Killer effects are halved when the enemy has two races (ex. If the enemy is both demon and spirit, demon killer and spirit slayer lose 50% effectiveness).
*Skill modifiers vary by ability, with a normal attack calculated as 1.
*Critical hits increase damage by 50%.
*Attacking your own units reduces damage dealt to one tenth (In the arena, your damage is capped to 999 per action, before chain. Note: The weakness text display only appears if you have 50% or more damage increase due to elements or killer abilities).
*Damage also varies depending on the weapon you have equipped.

II. Magic Damage: Refers to damage dealt via magic (ex. black magic such as fire, or white magic such as banish) or special abilities that inflict magic damage.

*Magic damage is calculated using your total MAG when dual-wielding.
*Enemy SPR is calculated after drains.
*Skill modifier varies per skill.
*Attacking your own units damage to one tenth (In the arena, your damage is capped to 999 per action, before chain).
*Damage also varies depending on the weapon you have equipped.

III. Hybrid Damage: Refers to damage dealt via combined physical and magic attacks.

*Magic damage is calculated using your total MAG when dual-wielding.
*Enemy SPR and DEF are calculated after drains and ignore SPR/DEF abilities.
*Physical killer effects will work on the magic damage portion, but not magical killer effects.
*Skill modifier varies per ability.
*Attacking your own units damage to one tenth (In the arena, your damage is capped to 999 per action, before chain).

A simple but accurate way of thinking about hybrid damage is that you're attacking with half of the skill modifier as physical damage with the other half coming from magic damage.