Stats (T2)

Stats are the four basic attributes of your character in Torchlight II. They differ from the stats in the first game.

Each character begins with 40 points assigned and gains 5 stat points to allocate each time they level up. The maximum character level is 100, providing 495 discretionary points in total.

Strength

• Increases both physical and elemental weapon damage for all weapons
• Increases critical strike damage bonus, up to 450%. Items can further boost the bonus to a maximum of 500%.

Dexterity

• Increases critical strike chance, up to 50%. Items and skills can boost the chance to 100%.
• Increases dodge chance (the chance to evade an attack), up to 50%. Items and skills can boost the chance to a maximum of 75%. 
• Increases fumble recovery (reduces the damage penalty for fumbled attacks)

Focus

• Increases maximum mana
• Increases all elemental damage(For example, It includes elemental weapon damage and "Inflicts x% of Weapon DPS as Electric Damage" on Ember Hammer of Engineer skill because the skills of this kind convert all physical weapon damage and elemental weapon damage into specified elemental type damage. In the same manner, you can't get any focus bonus from "Inflicts x% of Weapon DPS as Physical Damage" because it convert all weapon damage into physical type weapon damage, though you equip elemental weapon like Staff)
• Increases damage for all skills that do not inflict a percentage of weapon damage(For example, "+x-y Physical Damage*" on Sandstorm of Outlander skill is affected by focus even if tooltip doesn't explain)
• Increases execute chance (the chance of attacking with both weapons simultaneously when dual wielding similar weapons), up to 60%. Items and skills can boost the chance to 100%.

Vitality

• Increases maximum health.
• Increases armor.
• Increases block chance (chance to block when using shields), up to 50%. Items and skills can boost the chance to a maximum of 75%.

Calculations

Note that these were not released officially but were calculated by members of the community.

• Strength increases critical damage bonus by 0.4% each point. Base critical damage bonus is 50% (at 0 Strength). The maximal boost is reached at 999 Strength, giving 450% damage bonus (5.5x damage).
• Dexterity increases critical strike chance by ((0.2002-0.0002*Dex)*Dex), and dodge chance by the same formula.
• Focus increases execute chance by ((0.2002-0.0002*Focus)*Focus). Base execute chance is 9.8%.
• Focus increases 1 Mana every two points, capped at 998 Focus.
• Vitality increases block chance by ((0.2002-0.0002*Vit)*Vit).
• Vitality increases 3.6 Health every point (rounded somehow), capped at 999 Vitality.
• Critical strike, dodge, execute and block chance from attributes are all maxed at a 50.1% bonus, when the attribute is around 485. (For execute it's actually at +50.2%, giving 60% total, capped at 496 Focus.) The bonus is however already at 48.1% when the respective attribute is 400.
• As can be clearly seen Dexterity, Focus, and Vitality have diminishing returns on crit, dodge, block and execute chances as more points go into them. To be precise, when the attribute is around 0, every point increases the chance by 0.2%. It scales linearly so that around 100 every point increases the chance by approximately 0.16%, and by approximately 0.12% around 200, etc, until near 500 it no longer gives any return. This means that increasing either Dexterity or Focus past a certain amount to increase critical strike or execute chance is inadvisable.
• Arcane Statistics [Critical Damage] = Character Panel [max value Weapon Damage] * Arcane Statistics [Critical Damage Bonus]