You begin with 50% and it rises and falls based on your performance. Teams understand there will be damage in the course of a race. Therefore you are allotted 10 points of damage without adversely effecting your team status. If you more than 10 points in damage it is deducted from your team status. You can offset this loss however by performing well in an event. Winning a race yields a 8 percent increase in your team status.