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A friend of mine and I are in hot debate over the relic "The Angel of Sacrifice" from Angels of Death. It allows the user to still strike at their initiative if they are slain in combat, simple enough. We don't agree on this: if the bearer is in a challenge with a higher I opponent, does he tank all the wounds, or do they spill out? He will still get to strike, but say if he's hit with an ID weapon or a bunch of wounds, does he absorb them all for that turn?

They'd still spill out-though the exact wording might be helpful here.

 Vlad_The_Obliterator wrote:
A friend of mine and I are in hot debate over the relic "The Angel of Sacrifice" from Angels of Death. It allows the user to still strike at their initiative if they are slain in combat, simple enough. We don't agree on this: if the bearer is in a challenge with a higher I opponent, does he tank all the wounds, or do they spill out? He will still get to strike, but say if he's hit with an ID weapon or a bunch of wounds, does he absorb them all for that turn?

If the bearer of the relic is slain in a challenge all the extra wounds spills to any remaining members of his unit as properly point the challenge rules, the relic just allow you to attack back on that round despite being killed.

This is the same situation as 2 units in assault hitting at same initiative you simply apply the Dead before striking paragraph to the relic bearer and remove the model after the challenge/fight subphase it's resolved.