Trading AP for penalties (the 7 AP version) means that you give up the forfeit/transfer and instead give your opponent a "hurt" (-1 wound). Your opponent doesn't loss AP in this case. The grievious wound rule is invoked by the Narrator in "sufficient dramatic circumtstances" (the players can ask if it will be invoked, but can't force it). The -1 wound is *in addition to* the 15 AP loss, it doesn't replace it.
(Page 138 for "Trading AP for Penalties", Page 151 for "Grievious Wound")
RR
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