What is the effect "Blood oozes from you" on a Blood-Magic Blade?
As everybody said, it's just pure visual effect.
Just purchased a cheap one from AH and tested it a bit. You don't bleed, you lose no health, you don't hold the dagger by the blade. All what Blood oozes from you does is purely visual effect that also leaves some (very)tiny blood spots on the ground for a short period of time.
Here are a few screenshots:
