Items degrade their condition under heavy use. If you don't repair them, they can suddenly stop being functional, guns won't fire and armor will give minimal protection. To keep your gear in good condition, use repair kits. Each use of kits restores their full condition. To repair an item, right click it and select "Repair", while having the required kit in your inventory. There are 3 types of repair kits:

Ballistics Repair Kit is used for repairing all firearms, pistols, rifles and crossbows.

Weapon Repair Kit is used for repairing all melee weapons.

Armor Repair Kit is used for repairing armor and clothes.

All kits have 4 tiers: Basic, Simple, Average, and Superior. Each tier is designed to repair different item levels and they are all craftable (except Superior, which in fact isn't needed but a rare drop from Outsider enemies in Epsilon sector). Best method to keep your weapons in good state is repairing them when condition is under 15-20.

Items also have a stat called fatigue that indicates how many times it can be repaired. If an item runs out of fatigue, it can't be repaired. However, you can restore fatigue by right-clicking an item and selecting "restore fatigue" with another weapon or gear with the equivalent type and level (less than 5 levels below the level of the item to be restored fatigue on) to restore fatigue. The weapon used to do that will be destroyed.

Note: G.O.R.E. Weapons, (The JackalLunaticBastard) use their own repair kits, because of their high level.

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