You can use this damage system for things such as grenades, AoE spells, exposing characters in a certain radius, or anything else that requires an area of effect system basically. You can use the sample events I have added in to customize the effects on the targeted characters. For creating things such as grenades or more spell types, you might want to add a particle system. There is already one particle system for the base hit, but it is set up to allow you to customize the particle pattern. It uses a mesh location to establish the shape, so you can add your own mesh to change this shape. Keep in mind that the way this works is by using the UV map of that mesh to establish the dispersion of the particles in that shape (For example if there are a lot of polys in that area of the UV, there will be more particles).
