The Life Gauge is a must for fighting games. Attacks, throws, commands, special moves, Desperation Moves and Super Desperation Moves, Strikers all inflict damage to the player, thus causing the Life Gauge to lower. Basically all attacking commands deal damage to the foe.
 

The Life Gauge Ratio has raise or lower depending on the Tactical Order selected.

On the case of chipping damage, only special moves, Desperation Moves and Super Desperation Moves cause chip damage. Normals and command attacks can be blocked without harm.

Obviously, when the Life Gauge reaches zero, the player has lost.