From the update:
Fallen's Designer Diary #3 wades deep into battle to see how Challenges are resolved. We'll show how the custom dice are used as well as Power cards, Fortune dice, Ultimate abilities, and Equipment cards.
The Challenges in Fallen cover a wide range of dangers a adventurer may encounter in a dungeon such as disarming a trapped room as the walls close in, casting a spell to keep dark spirits at bay, and fighting battles with goliaths at the bottom of the dungeon.
Lead Designer Tom Green presents the third designer diary video giving an closer look at the mechanics of Challenges for both the Hero and Dungeon Lord.