What exactly is the penalty for wearing non-optimal gear for your rank?

[MeowyWowie]

The only time I've ever noticed any difference in performance is when crafting tools go below 50% durability. Weapons and armor don't seem to be affected at all still, as far as I can tell. However, I never let the gear damage icon appear, always repair before gear falls under 35% (tools @ 50%).

As far as gear damage goes, there's hardly any difference except for weapons and tools.

Edit: Seems I missed the main point of the thread lol.

On topic, the effects of wearing gear that does not favor your class or your rank is so miniscule that, more often than not, you're better off wearing armor above your rank. Weapons and tools on the other hand show a significant reduction in stats under the same circumstances. The system needs a lot of tweaking.