I looked at this once.
I don't remember the specifics, but it goes something like this.
It starts of simple, as a function of velocity (and maybe density).
The results are then scaled down by a fixed amount.
Then a soft cap is applied: beyond 4 points or so of damage, the damage is scaled down even further.
Somewhere in this mess, a global multiplier based on difficulty level is also applied.
Oh, I should also mention that there are separate calculations for different interactions, including ship vs ship and ship vs asteroid. I
think the one above is for ship vs ship.
Here there be dragons, indeed!
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Somewhere on my TODO list is an item that reads something like "game_settings.tbl flag for simple linear collision damage scale", so you can have those high-speed collisions be actually dangerous. I'll most likely never get to it.
