25/11/2014 - Chip Damage (also Block Damage)

The reduced damage a character takes from an attack while blocking. Generally an extremely small amount; in some games, normal moves do not cause this. The term refers to the visual effect of the player's life bar being "chipped" away, bit by bit. Also refers to a type of fighting that relies soley on causing such damage.

9 seconds into this video there is an example of chip damage.