That's a good note. I have ofc already realized it (;P), but it's good for all those Warmogers out there.
"every now and again you come across a game that has so little emotional connection to who you are that you end up standing there, gazing at the screen and saying "I'm just pressing buttons and my life has no meaning,"" - Colin Campbell
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Effective HP = HP * (100 + AR) / 100
HP gained by FoN = 0.35% * HP
Effective HP gained by FoN
= (0.35% * HP) * (100 + AR) / 100
= (0.35% * HP) * ((100 + AR) / 100)
= 0.35% * (HP * (100 + AR) / 100)
In other words, you restore 0.35% of your *effective* HP per second, due to the nature of the formula. Therefore, you should still get as much effective HP as possible, you will make the most out of your heal effect that way.