Old Armor Class is no longer used to determine hit chance. Instead:
- **1 AC = 1% damage reduction** (rounded down).
- AC is split into:
    - **Physical AC**
        - Blunt, Slash, Pierce
    - **Elemental AC**
        - Fire, Ice, Lightning, Force, Necrotic, Gas, Holy, B

Example:  
If a target has **20 Slash AC**, incoming slash damage is reduced by **20%**.

Damage is reduced **after** all other modifiers (crits, posture effects, etc.).