Quote Originally Posted by Reika View Post
You dont recieve 'zero' benefit for equipping stuff above your rank... you recieve less benefit depending on your rank. If you are R1 equipping a r40 item, you will see barely any change over an actual rank 1 item, however if you are r39 equipping a r40 item, it will be closer to the stats of the item. Tho the benefit drop is the most at that one rank difference, each additional rank is only minor loss.

EX:

R40 Armor A Has 100 defense
Equip at R39, it will give 90 Defense
Equip at R38, it will give 88 Defense.

so on and so forth. Its roughly a 10% drop from that first rank, and slightly more each additional rank under you are.
I'm pretty sure it's more substantial than that. I have a level 26 robe and the next tier up, which is level 34 or so - the level 26 gives me a noticeably higher stat increase.

The few times I've equipped high level stuff as a single-digit rank character the effect has been nearly nonexistent. Maybe it varies between equipment types, however.