understanding ghost dance correctly?

I think I understand the principle of GD, but just to make sure:
- GD gives Shrouds, which do nothing to mitigate damage or mitigate hits
- Shrouds will be removed once per hit (no cooldown on losing them, e.g. no limit on number of shrouds I can lose per time unit, except for the maximum of 3)
- removing a shroud will recover 3% of my total ES

Now I am unclear on the wording on 3 parts, so here are 3 questions:
1. Will the hit FIRST do damage (unless its chaos damage, then to my ES, thus removing a portion of it)? And THEN the shroud will recover that? Hoping that this is the correct order of application, otherwise this seems less appealing
2. "recover" the 3% of ES how? That is, recover it instantly, or "recover" it according to the mechanics of ES recharge rate?
3. The only "downside" is that I cannot "recover" ES to above my evasion rating. I'd have to have pretty crap evasion or astronomical ES for that to be the case, though, right? But would this caveat (cannot recover more than evasion) apply only to the "recovery" of ES through GD mechanics or does it mean I can never have ES recovery (through any means, e.g. recharge, or energy leech) higher than my evasion? I suppose I am not clear what "recovery" refers to here.

thanks in advance

The hit including the damage comes first, the recovery happens afterwards. Since there is no mention of it recovering the ES over a certain amount of time, the recovery is instant. If you have some evasion investment the limitation is typcially not a problem. It only serves to prevent pure ES or armor/ES builds from utilizing it. If you ES is higher than your evasion that means it's hardcapped by your evasion, nothing you do will fill it beyond that. If i am not mistaken that can even be utilized to get perma leech for example because you ES will never get full so your ES leech stacks will not get removed for being at full ES.

1. You will take the hit first and then recover the 3% ES.

2. Instant, 0 delay.

3. The downside applies to all forms of recovery like regen, leech or recharge.

The general goal for this keystone is to be more often at full ES on a build that struggles with ES recovery but has a lot of avoidance (evade, dodge).

thank you.
I was right next to it, seems like an decent deal for this low opportunity cost.

The shroud recovers 3% of your Evasion, not 3% of your ES. If you have 30000 Evasion and 900 ES, you would recover 100% of your ES.

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TemjinGold wrote:

The shroud recovers 3% of your Evasion, not 3% of your ES. If you have 30000 Evasion and 900 ES, you would recover 100% of your ES.

Yes!

Thank you, I didn't know about it before.