Your stats include Health, Guard, Initiative, and Weapons.
Your Health represents your ability to take injuries and keep on fighting. Health is indicated by the red orb in your Healthbar. (By default, the Healthbar is located in the upper left corner of your screen.)
As you take damage to your Health, this orb empties. When your Health reaches zero, you are defeated and will have to be revived with smelling salts to continue. Health does not regenerate on its own, which means that you will have to use First Aid to recover lost Health.
Your Guard represents your ability to avoid injuries. Guard is indicated by the blue arc to the left of your Health in the Healthbar. As long as you have some Guard remaining, damage inflicted on you will be subtracted from Guard instead of Health. When your Guard reaches zero, you will start taking damage directly to your Health. Guard regenerates slowly during combat and very quickly when you're not in combat.
Both Guard and Health will increase as you rise in level. Some outfitting may also increase Guard or Health, and you may be able to use skills that increase them as well.
Initiative represents your ability to take actions in combat. Initiative is indicated by the yellow bar extending from your Health and Guard displays in the Healthbar.
Almost all skills require that you spend Initiative to use them. If you lack the required amount of Initiative, the you will not be able to use the skill.
Initiative recovers quickly while in combat and very quickly while out of combat. However, you might use skills so quickly that your Initiative doesn't have time to recover. Therefore, equipment that increases your maximum Initiative or your Initiative Regen (the rate at which your initiative recovers) is extremely valuable.
In addition to equipment, you may also have access to skills that restore Initiative.
By looking at your character sheet you can inspect your character's currently equipped weapons. Initially, in your main hand, you will have a cutlass, a rapier, or a smallsword.
By looking at the tooltips for these weapons (hover over the individual icons), you can see their damage, as well as any additional bonuses they may provide. Y
ou may also have a pistol equipped. Pistols are used with their own special set of skills; all characters have the Shoot skill, but you may also learn other pistol skills as you level up.