Tier
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The tier system is an OOC system for classifying the quality of items.
Weapons
In general, weapon "tier" is determined by stats. Every weapon category has a formula that determines its total stats at a given weight. This formula is unique due to how each weapon group's RTs, base weight and handidness vary.
100% is considered tier 6. How much that a weapon goes above or below 100% of total stats determines if it is of a higher or lower tier.
Mathematically you might say this should give lower-tier lighter weapons an edge, and higher tier 2-handers an edge. However, stats have a built in diminishing-returns that evens this out nicely.
But this breaks for weapons like mirror blades that add a gigantic bonus to balance and suitedness. In combat today, balance improves your OF score and suitedness raises your potential damage cap and chance to stun/knockback. At the extremely high end these do not provide as much of a functional benefit as raising the damage stats, so the "tier" appears inflated. A true Tier 8 weapon would have the same stat total, but would shift some power/balance into P/S/I.