diff --git a/docs/game-design/skills.md b/docs/game-design/skills.md
index adecf56..2d4afe8 100644
--- a/docs/game-design/skills.md
+++ b/docs/game-design/skills.md
@@ -54,7 +54,7 @@ Categories group skills for **UI and balance** (e.g. *Gathering*, *Craft*, *Tech
 ### XP, failure, caps, pacing (skills)
 
 - **Server-authoritative** grants with structured sources (node, recipe, mission payout, …).
-- **Failure XP** per activity where it helps fun and not exploits.
+- **Failure XP** (XP on a **failed attempt** at a skill action—e.g. burnt recipe—not **death penalty**): **per skill / per mechanic**; **open** globally, will depend on how each activity is built and what exploit surface it has.
 - **Runaway mitigation** via diminishing returns, context, soft caps.
 - **Gates** (recipes, rep, licenses) should **add** paths, not fake gigs.
 - **Pacing/catch-up** (E2.M4) applies across **skills**; **gigs** may use the same engine or a parallel one—**open**.
@@ -89,7 +89,7 @@ Categories group skills for **UI and balance** (e.g. *Gathering*, *Craft*, *Tech
 | Combat vs. non-combat | **Gigs** for combat; **skills** for gather/craft/etc. | Agreed |
 | Professions (economy) | No separate profession system; economy identity from **skills** + rep | Agreed ([overview](overview.md)) |
 | Primary skill XP | Do the activity | Agreed |
-| Failure XP | Per-activity; watch exploits | Open |
+| Failure XP | **Open**; decided **per skill / activity** once mechanics exist (not the same as death penalty) | Open |
 | Skill caps | Prefer soft; hard only if economy/PvP needs | Proposed |
 | Gig swap rules | — | Open |
 | Sub-gig | **FFXI-style** slot **agreed**; sub abilities up to **~½ main gig level** (formula TBD); wide build space | Agreed |