I've been running some sample combats to familiarize myself with the system, and I noticed something: Is there any kind of penalty to your character's defense as your character is wounded? Unless I'm missing something, it seems you keep the same Armor TN no matter how badly wounded you are.

...this is rpg right? If so yes, you're right.

Edit:
Well to clarify the armor TN itself stays the same, but as you take wounds and fill in those round ranks, it becomes hard to hit them back. If their Armor TN is 15 but I an nicked and thusly at a +3, then I need an 18 to hit.

To give context: Armor TN seems to be balanced about the idea that accuracy gains are much bigger than defence gains. This means that unwounded samurai attacking character who is similarly skilled at defending themselves as the attacker is at attacking, the attacker should be able to hit reliably. I believe this is because you need to account for the fact that combats won't be usually resolved in a single strike, so both attacker and defender will suffer from wounds - so if ATN was balanced about being "hard to hit by unwounded opponent", combat would turn into miss fest by the time both parties would be wounded. Does it make sense?

Basically, in normal skirmishes, expect everyone to get hit at least once or twice, even the ATN focused characters.