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To add on to my thread from earlier:
I'm considering using "negative facets" to represent damage and stress, which would be used just as normal facets, just halfway inverse (penalties to you when applicable). Characters could take a certain number (say, 5 total) and whatever was the final "hit" would determine how the character is "taken out".
Damage will probably be in degrees of stress/wound linked to degrees of success. A degree of success will probably be something like every +3 or +4 over target number. Need to sit down with some dice and a friend with a good mind to determine that for sure.
So if you're physically beaten up, then go into a debate, your wounds would possibly affect your ability to argue, but losing would "take you out" socially rather than physically. Likewise, if you're hella stressed, a wound could "take you out" physically as you're too freaked to compensate.