Like many D&D clones Cascade Failure includes an alignment system, but one less restrictive than that found in many systems. Combat, on the other hand, uses an ascending AC system designed to represent how difficult it is to injure a target rather than to actually hit it. The injury system is an elegant and surprisingly obvious way of balancing the traditional acquisition of more hit points per level with the deadliness of science-fiction weapons. As with the old D20 Star Wars system (which Cascade Failure improves upon) hit points do not represent how much injury a person can withstand but rather how good they are at dodging out the way. Hit Point damage reflects a combination of near misses with bruises, aches and physical fatigue acquired from close calls and throwing ones-self about the place to avoid been hit. As any modern soldier will tell you, it's more difficult to score an effective hit on an experienced opponent in ranged (or for that matter, melee combat) because they make better use of cover and are generally more willing to inflict bruises and minor injuries on themselves by diving onto rubble and throwing themselves about the place than a novice is.
Look out for an actual-play report and some sand-box articles soon.