https://forums.sinsofasolarempire.com/310084
^armor
Mitigation is a straight reduction of damage. It applies even if the shields are down. Every point of damage a ship takes increases its mitigation, but mitigation drops at a flat rate. As long as you are taking more damage than that flat rate your mitigation will increase over time.
There's a minimum of 15% mitigation that applies to every object with shields. Most ships have a maximum of 60% mitigation. Capital ships have 65% max mitigation at level 1, and it increases by 1.1% per level.
Phase missiles penetration not only bypasses the shields, it bypasses the mitigation, which is why it's so highly sought after.
Minimum mitigation, Mitigation drop rate and Mitigation increase from damage can be adjusted at a per-player level in the Player*.entity file. Max mitigation (and mitigation gain for leveling cap ships) can be adjusted at a per-ship level.