Just to add on to this, the damage cut is relative to the amount of fetters currently up: 1 fetter gives 50% DT, 2 fetters gives 80% DT, 3 fetters gives 99% DT.
Magic list changes based on HP:
White HP: Tier III
Yellow HP: Tier IV, Elemental -ga III, Holy, Comet,
Red HP: Tier V, Elemental -ga IV, Holy II, Meteor
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