There are different damage types in LOCO and they have different properties, they are separated into:
This is found in all melee weapons and some ranged weapons. It is reduced by the Physical Defense stat.
This is found in all ranged weapons and some melee weapons. It is reduced by the Magical Defense stat.
This is damage caused by a skill or possibly NPC. It is undispellable and is found in Laair Hathy's Hungry Ghost skill.
This damage is a form of DoT and cannot be dispelled by Skill Immunity or Spell Removal Scrolls. It can only be removed by using a Potion of Bless. Base Points, Towers and some Guardians have a slowing poison, rather than a DoT.
This is the most common form of damage found in skills. It is reduced by items and skills that offer 'Reduce Skill Damage Taken'.