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Flaws

Flaws are the things that make your character human--well. You know what I mean. They’re those lovable little quirks that make your significant other want to throw you out the window sometimes. Flaws use the following format:

   X. Any time y happens, the character z.

Where X is the name of the flaw, Y is a happy happenstance across which you’d reasonably expect to happen maybe once in a given story*, and Z is an unfortunate choice or obstacle that will make the character’s life difficult.

Obviously, Z should avoid being abusive to other players or making the game less than fun for other players. It can, however, abuse other characters, even the character’s friends, or make life a lot less fun for them. If you’re planning on abusing a fellow PC, though, be sure the other player is okay with it. We endure plenty of harassment IRL--some of us don’t want to put up with it in our games.
This formula both limits the character and expresses a part of hir personality or capabilities.
Sometimes, a player needs to overcome this quirk for the sake of the character, the party, or the narrative. Your group has two options:
By far, the better option is to roleplay the conflict. The character is constrained by the flaw, but ze overcomes that need or setback and manages to push past it for the greater good. Ze still thinks about it, though. If it’s a physical flaw, maybe ze suffers fatigue or pain because of it. If not, ze might conspire about how ze’ll go back and indulge hir flaw later.
Sometimes, though, there’s not time to roleplay the conflict. Or maybe it’s not very important in the current narrative. In these cases, you can use mechanical sleight-of-hand to represent the distraction and turmoil the conflict causes the character. Ze gives up either a point of Luck or Resilience for the rest of the session. If ze doesn’t have either of those, ze has to suffer 1 Trauma (Armor-Piercing) if the flaw is mental, or 1 Wound (Armor-Piercing) if it's physical.

* It’s okay for a flaw to come up more than once per story, but it shouldn’t cause significant problems more often than once per session. The goal is to create interesting situations for the character, not to annoy the other players and GM.

Sample Flaws
Addicted to X. Any time the character is stressed out or relaxed, ze satisfies a craving for X.
Arrogant. Any time the character feels superior, ze has to say something about it.
Berserker. Any time the character is seriously wounded, ze loses control and tries to kill everyone around hir.
Bully. Any time the character is frustrated or fails, ze has to take it out on someone smaller or weaker.
Clumsy. Any time the character relies on agility and finesse, something tends to break.
Compulsive X. Any time the character has a chance to do X, ze will.
Defender. Any time the character sees an innocent in danger, ze has to help.
Flighty. Any time the character has to focus on one thing for very long, ze gets annoyingly bored and everybody knows it.
Greedy. Any time the character smells a payday, ze’ll do anything to cash it in.
Gullible. Any time somebody tells the character something earnestly, ze believes them.
Honest. Any time the character has a chance to tell a lie, ze won’t.
Hunted by X. Any time the character gets in the spotlight, ze’s ambushed by X.
Impulsive. Any time the character has to make an important decision, ze tends to go with hir first impression.
Indebted to X. Any time the character makes money, ze has to give part of it to X.
Infamous. Any time somebody new meets the character, ze had to overcome a negative reputation.
Insensitive. Any time the character says something that might hurt someone’s feelings, they take it the wrong way.
Kleptomaniac. Any time the character sees something unattended that doesn’t belong to hir, ze picks it up.
Motion Sickness. Any time the character rides in a vehicle moving more than 20 miles per hour, ze gets nauseated.
Night Blindness. Any time the character is in the dark, ze sees only about half as well as ordinary people.
Nightmares. Any time the character goes to sleep, there's about a 50/50 chance ze’ll suffer from awful dreams bad enough ze wakes up from them in a state of terror.
Oblivious. Any time the character might notice something important when ze’s not looking for it specifically, ze misses it.
Oppressed. Any time something depends on the character’s social status, ze’s out of luck.
Pain Intolerance. Any time someone uses pain against the character, ze folds.
Picky Eater. Any time the character only has one choice of food, ze cannot eat.
Pious. Choose one or more times of day. Any time it’s that time, the character stops to offer prayers.
Profane. Any time the character gets excited, ze uses shockingly offensive language.
Self-Conscious. Any time a task requires confidence and assertiveness, the character freezes.
Selfish. Any time the choice is between what’s good for the character or what’s good for someone else, ze picks hirself.
Short Fuse. Any time the character might get angry about something, ze will get angry.
Spellbane. Any time the caster tries to resist a spell or its effects, ze blacks out. (If ze doesn’t resist it, ze doesn’t black out.)
Stubborn. Any time the character disagrees with something, ze becomes loud and argumentative about it.
Trustworthy. Any time the character has an opportunity to take advantage of someone, ze won’t.
Uncouth. Any time the character depends on tact or etiquette, ze makes an ass of herself.