Harm and Recovery
We've mentioned "Harm" but haven't really addressed what it means. Let's fix that.
Where Are My Hit Points???
Take a deep breath… There aren't any.
When you take harm, it just creates a modifier that reduces your effectiveness on future rolls by counting directly against your EL. Get punched hard enough to rattle your brain, it makes everything harder until you recover. When total harm exceeds your base Level, you're Down - or at least Staggered. Once Down, you can only make resistance rolls until you recover.
Yes, this means anyone can be taken out easily at low levels. That's intentional - heroes grow into their legendary toughness. If that's a little too much realism for you, use the Staggered rule, but you should still pay attention to the odds and give yourself time to become awesome.
The point in Level One is not to get hit, which is what Armor and Luck Tokens are for!