The maximum reach of a single hop of the chain is the lesser of the distance between the caster and the first target, or 2*sqrt(Runecraft). Yes, this presumes that Runecraft skill will work right.
This rune is only slightly rarer and more difficult to cast than the Arrow rune. Yet it has one particularly useful quirk: it is one way to get a spell to go around a sharp corner, e.g.:
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All runes have their usual effects with Chain, with the following exceptions:
* Undeath+Chain strikes corpses rather than living monsters, attempting to raise them as undead, with reduced success rate at each hop.
* Life+Chain will prefer a friendly over an enemy monster at the same range (just to be nice).
* Primary+Chain+Ball will in fact cast a ball spell at each hop of the chain. However, the range of each successive ball as well as its power are cut by the decrease in power at each hop.
* Primary+Power Surge+Chain causes a "chain reaction": Each monster in view is struck at full force as per Power Surge, then with 1/3 dice, then 1/6 dice. (This I figure is easier on the math than calculating all those "nearest monsters".)
* Primary+Armageddon+Chain just causes everything to go splut.
[This idea is based on the popular "chain lightning" spell used in many games including D&D, some of the Ultima series, and WarCraft III.]