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In Ars Magica 2, Magic Level determines the amount of mana and burnout the player has, and in turn, how effectively spells can be cast.
Magic Level is separate and not influenced by Player XP and only unlocked and visible after obtaining an Arcane Compendium. Magic Level is increased by using spells on valid targets, eg. dig spell on Dirt or Stone, or using a fire spell on a Mob. If player spams spells however, the xp they receive is decreased.