How do the stat points act in terms of the IC? Are they to be used as a rough guideline when writing the narrative, or do they have a mechanical implementation?

If two players' clans get into a battle, will the outcome be predetermined by these numbers? If I have a Battle rank of 1, and my opponent 4, am I destined to lose, barring some great blunder when we collab a battle? 

Also, what constitutes major/minor clan penalties? There are no examples given for either. Nor of the Decadence trait.