Damage
Damage is used to illustrate the concepts of wear-and-tear on items. Most items will accumulate damage when left outside, though this process can be slowed with the use of containers. Items made from cedar trees decay slower. Containers made from cedar do NOT protect their content better.
Some items are damageable through player actions as well. Most tools will take damage and require repairing from usage or failed improvement. Walls, fences, and player structures can take damage from direct player attacks.
Should your character sustain damage (being attacked by wildlife or other players, by falling etc.), any medium wounds (you can find your wounds on your body in your inventory) or worse are likely not to heal by themselves. You can heal them by casting healing spells (See Religion) or by using rags as bandages, it's also possible to use healing covers to heal.
Damage reduces the effective QL of an item to QL * (1 - DMG/100). Example: A QL 20.8 log with 26.0 damage will only give QL 15.4 kindling.