Like Max's T.U.R.B.O. Energy, the Terror Energy enhances the physical capabilities of the user, making him or her stronger and more agile than an average individual. The energy can cause a mutation the user, transforming him or her into a monster.
The energy is also shown to be highly destructive towards technology, like Max's equipment, as seen when Terrorax easily destroyed Max's power gloves or when Terrorax defeated Tempestra in seconds by just holding her with his hands. According to Steel, the Terror Energy drains all the power of the user or gear by desestabilizating it on a molecular level.