Armor Piercing
Armor Piercing (also called Armor Penetration) is an effect found on certain weapon Enchantments designed to ignore a certain percentage of the target's physical damage resistance.
Mechanics
Armor piercing reduces the target's armor resistance to your attacks by a flat percentage.
Unlike damage resistance debuffs, if the recipient of the penetrating damage has resists over the cap of 75, it will never be treated as higher than 75. This means that it is impossible to reduce the effectiveness of armor piercing (unless the victim has no armor).
Examples
You have 33% armor piercing on your dagger, and your target has 75 resistance to slashing damage. Your attacks always treat the target as if they only had 50 slashing resistance instead.
The same target returns with 100 slashing resistance (effectively 75 with the cap). You will hit them as if they had 50 slashing resistance, just like before.