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Chances of Biome Mimics spawning.

According to Red, the luck system was added to punish those who use the "wrong" torches for each biome.

The following steps are taken to incorporate luck into a player's damage:[1]
The initial damage value is generated.
The game checks if the player has > 0 luck, and if so, generates a random number from 0.0 to 1.0. If the random number is less than the player's luck, a second damage value is generated, and the higher of the two numbers is dealt.
If the player has < 0 luck, a random number is generated from 0.0 to 1.0. If the random number is less than the absolute value of the player's luck, a second damage value is generated, and the lower of the two numbers is dealt.

The price of items that NPC's sell is 50% more expensive