Chained Spirit

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SO I was thinking of using the armor as damage reduction rule in a game I'm running, and two main questions came to mind.

First: Touch attacks. How are they resolved? Do "touch attacks" even exist?

Second: Stacking Damage reduction with existing DR/Alignment and/or material Damage Reduction (Don't believe this is mentioned).

Any thoughts?

[edit] to clarify when I say "material damage reduction" I'm referring to, say, a lycanthrope's DR X/Silver