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Right now i have a character and im wearing armor that alows a modifier of 2, seeing as i have 15 dex that works fine. BUt my question is what do i lose if i wear an armor that only allows for a modifier of 1? I looked on some pages and searched in some walkthroughs but i cant find a good answer.

What exactly does the ability modifier do?

Thanks

You mean the dexterity bonus?

Simple, any number on your armor that's listed next to dexterity bonus means that it's a limit. So say you had an 18 dexterity, and an armor that allows a Dexterity bonus of 3, well this means that you will only get +3 to your AC from your dexterity bonus rather than your total +4.

It's why rogues wear light armor and fighters or dwarves wear the heavy stuff, stereotypically speaking.