If loss seems to be inevitable, you can offer a concession instead of continuing the conflict. A concession is basically a special form of being taken out—you lose the conflict, but you get to decide your character’s fate on your own terms instead of your opponent’s. That way, your character doesn’t have to take any consequences you’re not willing to take and can avoid fates that might arise from being taken out by the opponent, such as getting captured, killed, humiliated, etc.

Getting Taken Out
If the damage exceeds the character’s stress track, or occupied boxes “push” the stress off the right side of the stress track, the character is taken out, meaning the character has decisively lost the conflict. His fate is in the hands of the opponent, who may decide how the character loses. The outcome must remain within the realm of reason—very few people truly die from shame, so having someone die as a result of a duel of wits is unlikely, but having him embarrass himself and flee in disgrace is not unreasonable.

Cashing Out: The Bright Side of Defeat
Losing a conflict, either by concession or by being taken out, grants the player one fate point per consequence taken in the conflict. This is called cashing out of the conflict. You can think of this as a compel of each aspect taken in the conflict, because the assumption is that those consequences directly contributed to the character’s defeat.

As a rule of thumb, when death is on the line, the GM should announce it in advance, preferably at the start of the conflict—e.g., “This guy’s playing for keeps. If he can kill you, he will. You can see it in his eyes.” or “Hello, my name is Inigo Montoya. You killed my father. Prepare to die.” That way everyone has plenty of time to see utter defeat coming and can keep an itchy finger on the concession trigger.