That sounds really similar to the harm system in Matryoshka actually.

Like there are 7 points of harm anyone can take and as they pass certain thresholds they can receive wounds both physical and otherwise that may cause negative modifiers to subsequent rolls on certain stats or even just in general.

Like in the campaign I am in my character almost got themselves killed in a monomaniacal attempt to communicate and study a psychic entity and wound up just letting them literally live rent free in his head.