Dynamic Crater

Craters are formed by explosive ordnance such as bombs and dynamite upon detonation. The larger the explosive, the larger the crater. For example, a bomb's explosion will leave a far bigger crater than dynamite.

Craters that are deep enough to reach sea level will fill with water. Otherwise, they will emit toxic smoke that causes suffocation damage.[1]

Craters can be cleared by using the circular button next to the demolish button on the Construction (F11) window.

Craters can also be used strategically to reveal underground buildings or parts of buildings.

The inside of a bomb crater.

Another view of a crater.

These craters should not be confused with the geological features found on worlds.