Experience Points
After an important Scene, or after a particularly impressive action by a character, a GM may award experience points. These can be used to advance your characters. You can spend them once the current Scene is finished, or you can save them up to spend them all at once.
Skills
Raising a skill from one step to the next takes four XP. Whenever a skill is raised, a player can also move one point from one skill and place it into another skill. However, no skill can be raised above Superb.
Fate Points
For every five XP you spend, your starting Fate Points increases by one.
For example, Jack has four XP to spend on Billy. He decides he's going to raise Billy's Thievery up a step, bringing it up to the max of five. At the same time, he decides to pull one point from Physical Defense and puts it into Melee, making them both Good. Billy's gotten a bit more inclined to fight things out. Then Jack checks the total XP he's spent so far, and notices it's now up to eight. Since he's now passed five, he increases his starting Fate Points to four.