Right! I left that out of the example because: a) I forgot about them!Majestic wrote: Don't forget to allow them to use their Traits for automatic successes! It will only give them a single success per usage (i.e., no chance of getting two or three successes with a great or extraordinary roll), but Traits like Fair-Spoken are perfect for Encounters.

b) They are used during Encounters as any other time, so there's no need to specify how Traits are played during Encounters.
But Majestic raises a good point here: Encounters seem to be designed so that they can never be "losed".
By "losing an Encounter" I mean surpassing 0 Tolerance without having obtained not a single success.
ANY Trait that can be related to social interaction (Fair-spoken, Beautiful, Honorable, Fair,... [sorry, I don't recall the names in english]) can be used by the first hero to introduce himself or the group for an automatic success. That way, even if the group screws it up for the rest of the tests, they will have obtained 1 success at least. The introduction of the Optional Rule for Level of Success makes it meaningful, but remember that the original rules simply considered that, with 1 success before running out of Tolerance, the group had already achieved their goal.
That may be an intentional effect of the rules (no adventure will be cancelled because of a few bad dice rolls) or there could be some mistakes in the rules or in how we play them.
As Majestic, I've never had the situation where my group "failed" an Encounter. Not near.