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I have seen a lot of people crafting in gear that is not for that particular class (i.e carpenter using a canvas robe). Does this really matter? Is there any penalty for this? I currently craft in almost all classes and have had trouble managing my gear (space and trying to pick the best gear). Any advice on this would be most appreciated.
There is some penalty, but usually it's so small cross-class that people just ignore it. That's why you see everyone wearing Dodore's Doublet even if it's not optimal: the reduced stat is still far better than anything else available to any class.
By equiping gear that is not optimal, it will also wear out quicker and need repairs more frequently.
Cross Class Penalty = -40%
Rank Penalty = ~-20% at 1st rank difference and about 2-4% drop per rank after. Varies from equipment to equipment because scaling formula is such that the breakeven point between 2 consecutive equipments in the same series is set at the halfway point of the optimal ranks.
E.g. You get more stats from a R12 tool than a R7 tool at R10.
And the penalties stack. So if you're both of the wrong class and rank, you can get 60+% penalty.
I do not know if there is any penalty cap.