Chakra and Physique Tier Rating
There are ten tiers of advancement in both Chakra and Physique. Each Tier is sub-divided into three ranks: Earth, Heaven and Perfection. So you can have Earth Academy Students, Heavenly Lower Genin and Perfect Upper Genin and so on. No one in-story will refer to each other as such, this is purely to avoid any confusion from having overly similar terms.
Here are the Tiers:
0 - Civilian
1 - Academy Students
2 - Lower Genin -
3 - Upper Genin - Hinata is here. She's a Heavenly Upper Genin in Chakra and Physique.
4 - Lower Chuunin - Neji is here. He's a Heavenly Lower Chuunin in both Chakra and Physique. Most active chuunin are at around his level.
5 - Upper Chuunin - Despite the name, most ANBU and newly minted Jounin are at the upper reaches of this Tier.
6 - Lower Jounin - More experienced Jounin and certain teenage geniuses are at around here.
7 - Upper Jounin - It is rare for shinobi to make it to this level. The Sannin, when they made their name, were only 'Heavenly Upper Jounin'.
8 - Lower S-Rank - Everything above this Tier is considered Kage-level.
9 - Upper S-Rank -
10 - Legendary
In combat, you compare Tiers and Ranks. Opponents with the same Tier but different ranks add +1 auto-success/rank to the combatant with the greater rank. Opponents with different Tiers also count the differences in rank, but double the number of auto-successes per difference in Tier. (A Perfect Civilian fighting an Perfect Upper Genin would have a difference of 6 ranks, and a difference of two tiers, 2^2x6= 24 auto-successes for the upper genin.)
Physique is less formidable than Chakra. In a clash, Physique is always considered 1 tier lower than Chakra and there are many shinobi who do not rely on physique at all (on the extreme end, Sasori of the Red Sand simply did away with having a body altogether, relying purely on puppetry and ninjutsu).
However, increasing your physique permits greater upper limits and faster action. Although genin max out at five dots, each Tier above Upper Genin adds 1 dots to all physical attributes and skills as the new maximum as well as +10 feet to their move action. So the new maximum for physical attributes would be 8 for lower jounin and 12 for legendary shinobi. Chakra Ratings, on the other end, permits access to greater and greater stores of chakra as well as more formidable techniques, many of them exotic and the ability to add a dot to max Willpower per tier, as well as half as many dots per tier for mental attributes.
Finally, any difference in Tier, accompanies a difference in speed. Whether Physique or Chakra, a shinobi is permitted an extra action for each Tier they are at above their opponent. In this case, Physique is not penalized: the two opponents compare their maximum tier and for each tier difference, one additional extra action is permitted. An exception to this rule exists if the difference in tier is equivalent to the difference in rank - aka, a Perfection to Earth, in which case no extra action is permitted.
FINALLY, to put an exalted spin on all this Narutoing -
An Exalted's Anima acts as their 'super mode,' increasing both their physique and chakra rating. This is purely for combat purposes: an exalt cannot learn new, previously restricted techniques by increasing their Chakra and Physique through anima flare, nor will training allow them to increase their physical stats past their current maximum.
At the 8-10 mote level they increase their chakra and physique by 1 rank.Due to Hinata's inexperience, the one dot Anima display will bleed 1 mote per action.
At the 11-15 mote level they increase their chakra and physique by 1 more rank (cumulative 2).Due to Hinata's inexperience, the two-dot Anima display will bleed an additional 5 motes per action.
At the 16+ mote level they increase their chakra and physique by an entire tier. (Cumulative 5 ranks). Due to Hinata's inexperience, the Totemic Anima display will bleed an additional 5 motes per action.
Also, because the anima does not need to be some weird 'Call A Wyld Hunt Beacon' you can turn it off at will, though in order to get it back up to snuff, you have to re-spend all those motes again.
Hinata's gained 5 ranks in physique and chakra, catapulting her from heavenly upper genin to earth upper chuunin. Compared to Neji's Heavenly Lower Chuunin, this gives her 2 ranks and 1 tier advantage, in other words 4 auto-successes, an extra action and some other miscellaneous benefits.
