Mitigation Buffs or Path of Exile 2 Currency Triggers
If you have a buff, guard skill, or reactive defense, it will absorb some of the hit:

Molten Shell, Immortal Call, Bone Barrier

These apply only if already active (or trigger instantly, if automated).

Step 10: Damage is Applied
Finally, the processed damage is applied in this order:

Energy Shield (if any and not bypassed)

Mana (if using Mind Over Matter or similar)

Life

If Life hits zero, you die unless:

You have a Cheat Death effect (e.g., Divine Shrine, Immortal Ambition)

You are prevented from dying (e.g., Vaal Pact stasis effect, Instant Leech save)

What About Damage Over Time (DOT)?
DOTs like Bleed, Poison, Ignite, and Chaos DOT (like Despair or Wither effects):

Bypass avoidance like Block, Evasion, Suppression

Are only mitigated by:

Resistances

Reduced Damage Taken Over Time

DOT multipliers

Armor and “damage taken as” mechanics do NOT work on DOTs.

Example Walkthrough: 3-Part Hit
Imagine a monster hits you for:

300 Physical

300 Cold

300 Fire

Here’s what happens:

Hit is not evaded, blocked, or suppressed

Base damage types confirmed

Fire and Cold damage hit resistances: 75% = 75 damage each

You have 25 flat physical reduction and 5,000 armor

300 − 25 = 275 Physical

Armor reduces that by ~40% → ~165

You have 20% of buy POE 2 Currency Fire damage taken as Chaos

Final Fire: 60 Fire, 15 Chaos

All final values go through damage taken multipliers

Shield absorbs damage first, then life

Reactive skills trigger if appropriate (Molten Shell, etc.)