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Damage dropoff is a gameplay mechanic, calculating how the damage of a single shot decreases when the target hit is at a distance away from the gun shot.
Damage dropoff is calculated by the hidden weapon stat RangeModifier. RangeModifier determines the amount of damage lost to the bullet base damage every 500 units the bullet travels.
General damage stats at range can be calculated by:
Damage * [RangeModifier ^ (Distance(u)/500u)]
Example: a UMP-45 has a base damage of 35 and a range modifier of 0.75. At 0 units, it will deal the base 35 points of damage. At 128 units (2.44m), damage drops off to 33 (after rounding). At 512 units (9.75m), damage drops off to 26.
Bullet range (called Range in Counter-Strike: Global Offensive) is the maximum distance which a bullet can travel. Beyond such a distance, the bullet will simply disappear.
This distance is generally quite long and most maps do not offer long enough distances to make such a stat notable. However, custom maps may have areas where the engagement distance is beyond the bullet range and hamper player performance.