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Mod is short for "modification". A modification is simply a part of the game that has been changed or customized.
Client-Side Mods
Client-Side mods are any modification that you may use alone with or without the server or other clients also having it.
They include HUDs, Models, Textures, and Skins.
HUDs: Heads up Displays include any text or images that are displayed on the players screen while they play. Includes such elements as health/armor displays, ammo in clip/ammo in reserve displays, time remaining, and reticles.
Models: Client-Side models refer to custom clutter objects, custom pickups, custom first person weapon models, custom player models, and custom vehicle models. Custom Clutter Objects could be called cheats if they are different sizes to the original or have different collisions for meshes and/or projectiles. Custom first person weapon models and custom player models are largly accepted as legitimate so long as they do not offer a distinct advantage such as brighter player skins and/or bigger player models.