Damage Reduction
From PotBS Wiki
Damage Reduction (in short: DR) is a special defense value that applies to damage done to a ship's armour (Port/Starboard/Bow/Stern). Hull and Sails never have any DR. Before damage from a shot is applied the current DR value for the side hit is subtracted from that value.
It behaves very differently from Damage Resistance (which lowers incoming damage by a percentage and not a definite number). In some circumstances it can completely remove all damage done. When the armour value of an area starts to drop the DR value of that area will drop in the same proportion. For example, if the port side of a ship had 1000 hp and DR 4 and takes a total of 500 damage the DR value of that area will now be only 2.
