DAMAGE EFFECT
You are probably familiar with using the Damage Effect to deal a set amount of damage to the targeted unit. However it is also capable of dealing 'splash' damage to nearby units. The main property that we need to look at in order to create splash damage is [i]Search - Area +[i]. Opening up this property (when in table view) shows the window below:

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This window allows you to specify 'damage zones' which can be used to specify how the weapon will splash and the amount of damage dealt to units in each zone. To help you understand this concept, we will look at the example shown in the image above (from the Crucio Shock Cannon Blast damage effect). This damage effect has three damage zones defined as shown in the image below. Each zone is circular in shape with the center located at the target unit. When the damage effect is applied, the damage (as defined in the Combat - Amount property) is dealt to the target unit. Then, each damage zone is selected and the damage dealt to each unit in that zone.



Each 'damage zone' has the following properties:
Arc: Restricts the damage zone to to a particular angle. The axis from which the angle is based off is the line from the caster to the target starting from the far side of the target (see diagram above)
Bonus: The bonus damage dealt to the unit in this zone
Fraction: The fractional amount of damage (from the Combat - Amount property. The total damage dealt = Bonus + Fraction * (Combat - Amount property)
Maximum Count: The maximum number of units that the damage can be dealt to in this zone.
Radius: the size of the zone. The radius is extended from the previous damage zone.
Radius Bonus: the distance the unit is allowed to move out the zone by before the damage effect is applied. The default is 0.
Validator: The validator which must pass in order for the damage to be applied.