Enter the Machine
There are four levels of Damage Capacity: Scratch, Hurt, Very Hurt, and Incapacitated.
A Scratch is just that, a scratch. It has no game effect, but multiple scratches eventually add up to Hurt a character. If a character without FOCUS has 5 Scratches and gains a sixth, he erases them all and becomes Hurt.
A Hurt character takes a -1 penalty on every single roll or check they make. If a character without FOCUS has 2 Hurt results and gains a third, he erases them all and becomes Badly Hurt. The penalties from multiple Hurt results do not stack.
A Badly Hurt character takes a -2 penalty on every single roll or check they make. If a character without FOCUS has a Badly Hurt result and becomes Badly Hurt again, he erases both of them and becomes Incapacitated. The penalties from multiple Badly Hurt results do not otherwise stack.
An Incapacitated character is helpless, cannot move, and is (hopefully) pulled from the Machine quickly. If a character without FOCUS has an Incapacitated result and becomes Incapacitated again, he begins Dying.
A Dying character is Incapacitated, but also must make a Toughness check (Fair difficulty, +1 per turn) each turn or die. If a Dying character is Hurt, Badly Hurt, or Incapacitated while Dying, he must immediately make a Toughness check with a difficulty 5 higher than the one he is currently making or die.
A Dead character is dead. There is nothing that can bring a dead character back to life short of a miracle.
A character without FOCUS has 5 Scratch boxes, 2 Hurt boxes, 1 Very Hurt box, and 1 Incapacitated box.