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From Terraria Wiki
The Warmth Potion is a buff potion which grants the Warmth buff when consumed. The buff reduces damage from cold-themed enemies (anything that can inflict Chilled) by 30%. This lasts for 15 minutes, but can be cancelled at any time by right-clicking the icon.
- Unlike other damage-reducing buffs, it reduces damage before it is reduced by defense, which makes it more effective with a high defense.
- It can reduce the damage from the following enemies: Mister Stabby, Snow Balla, Ice Slime, Spiked Ice Slime, Ice Elemental, Snow Flinx, Icy Merman, Ice Golem, Ice Queen and Flocko.
- It can reduce the damage inflicted by player's projectiles reflected by a Selenian or an expert Large Mimic. That includes projectiles of the following weapons: Ice Blade, Frostburn Arrow, Ice Bow, Snowball, Frost Staff, Blizzard Staff, North Pole and Staff of the Frost Hydra.
- It does not affect the ice-themed weapons' damage in PvP.
- This item is incredibly advantageous during the Frost Legion and Frost Moon events, as many of the enemies it contains are related to it. Plus, it will last the full duration of the Frost Moon.