Chi Points are used to increase your character's attributes. When a character reaches a new level, they receive 4 chi points to assign to any attributes. All attributes take 1 point to increase, except for the penalty attribute (also called the penalty stat), which takes 2 points to increase. When a player reaches a new tier (every 12th level), they receive 6 points instead of 4. When a player uses a restat or a Chakra Purge, then they can reassign all chi points that were previously assigned.
The penalty attributes are: