What is the difference between Hi-Fi and Lofi?

Could you please explain the key differences between Hi-Fi and Lofi? I'm interested in understanding how they differ in terms of sound quality, production, and even the overall listening experience. Is Hi-Fi more focused on clarity and precision, while Lofi leans towards a more relaxed and nostalgic atmosphere? Additionally, could you elaborate on the common applications of each in music and other audio-related fields?