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Rulebookp. 55p. 63

Defense

The amount of damage prevented each time an engage or ability deals damage to a unit. An enemy'sEnemyAll opposing units to the party are considered enemies, regardless of their level.Rulebook pp. 54–55, 90 Defense is printed on its chip.

Defense follows the rules for preventing damageDamage and Preventing DamageDamage is physical unless it's true damage. All damage dealt to a unit during an action is a single instance. Prevented damage is subtracted 1 point at a time; it was still dealt, but not taken.Rulebook p. 63: the prevented damage is subtracted 1 point at a time, and it still counts as dealt but not as taken. It does not prevent true damageTrue DamageTrue damage cannot be prevented or reduced by abilities unless they specifically affect true damage. True damage ignores any bonus HP and reduces the unit's HP instead.Rulebook pp. 20, 63.


FAQ

How often enemy defense get applied?

Defense applies to each instance of damage that you deal to a unit, preventing damage equal to the stat. Note that an engageEngageAdventurers may engage multiple times per turn but are limited by the dice they can roll and fatigue they can gain. You may perform a move action before or after you perform an engage action, but not both.Rulebook pp. 59–61 is considered a single instance of damage even if multiple different skills deal damage within the engage. This damage prevention applies even outside of turns.

Source