BackSource: Warhammer: The Old World Online Rules Index

Death of a Dragon
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When a Cathayan Dragon loses a Wound, that Wound is lost from both of its characteristics profiles. The first time during a game that a Cathayan Dragon is reduced to zero Wounds whilst in their Dragon form, they immediately revert to their Human form and recover D3 lost Wounds. Once this occurs, they may not take Dragon form for the remainder of the game. If a Cathayan Dragon is reduced to zero Wounds whilst in their Human form, they are removed from play as a casualty.

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