What is Ki?
Ki measures two things: each gear has its own ‘Ki’ level, and your character will be given a ‘Total Ki’ level based on the gears equipped (average of all 5 gear).
The higher your Total Ki, the better your damage output and damage resistance. For each Ki level below the maximum (by game difficulty), the less damage you will do and the more damage you will receive. While it is incremental (not a huge difference from one ki to the next ki), it can be significant for certain difficulties and certain attacks.
For all ‘Challenge’ game modes (and Platinum), here is a detailed Ki-by-Ki breakdown of the number of Square Katana Strikes (aka regular attack) to kill a Purple Oni Lord (44-hp bar)
As shown, the higher lvl your Ki is, the less strikes it will take to kill a Purple Oni Lord.

120 Ki

119 Ki

118 Ki

117 Ki

116 Ki

115 Ki

114 Ki

113 Ki

112 Ki

111 Ki

110 Ki

109 Ki

108 Ki

107 Ki

106 Ki

105 Ki

104 Ki

103 Ki

102 Ki

101 Ki

100 Ki
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