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The damage resistance provided is not damage reduction like what Wigfrid has. It is specifically protection, aka the same thing football helmets and marble suits give you. This means it only protects you from physical damage, unlike damage reduction which protects you from environmental effects and planar damage.

This damage resistance seems to take place after protection from armor, so a 100 damage hit while wearing a football helmet will be reduced from 20 to 16, assuming you have 3 super-hardy circuits and 1 hardy circuit, giving you 17.5% damage reduction (due to rounding and integers these numbers might not line up exactly). Also, the protection granted from the hardy circuits doesn't reduce how much damage your armor takes. With the damage resistance granted from affinities, the total damage taken is reduced to about 26%.

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