Status Effects (SEs) are debuffs that you can get from fighting enemies which will appear under your health bar if you have any. They make it harder to survive but provide a +25% XP and Drachma boost for each active SE to make up for it.

There are 3 types of SEs:

Dazed : Prevents you from being able to use anything other than your attack in the top position.

Poisoned : Deals 2.5% of your current HP in dmg every attack. Poison damage taken converts to Gear XP as well.

Blind : Makes you much more likely to miss your attacks.

There are 3 ways to cure SEs. They have a chance to automatically go away every attack (Dazed being the most likely to go away and Blind being the least likely), they can be manually cured in combat by using a Remedy (press the heart icon in the top right corner of the battle screen) or they will automatically go away if your Hero dies.

There are a few ways to prevent SEs. Use one of the 3 bikes from Borgen (400 AC each): Achlys Daimona
protects against Poison, Light of Theia protects against Blind and Focal Point protects against Daze. There are better bikes to buy first though. A great forever item to get is the Linus Sight helmet (also from Borgen, for 1000 AC) which provides an immunity against Blind and has great stats.

There are a few ways to gain SEs without relying on enemies randomly giving it to you. Poison can be gained by riding the Borgen bike Ruiner or using the booster Poison Pill. Blind can be gained by equipping the Helm of Darkness gained via Deaths Door. There is no sure way to get Dazed.