About PNG and JPG
PNG is lossless with full alpha support. Screenshots, UI assets, and anything with sharp edges or text stay pixel-perfect — the tradeoff is large files for photographs.
JPG is the long-standing lossy photo format. It compresses smooth gradients and photographic detail well, but it has no transparency and shows artifacts around sharp edges at lower quality settings.
Converting PNG to JPG is lossy — use the quality slider to trade file size against fidelity. Files are converted on the fly and never stored.