I've been thinking of having levels: Unknown - No contact with the other faction. War - obvious. Cold War - the default state of relations. Either faction may engage the other's ships outside of either territory. Peace - Friendly but not allies. Allows for various trade treaties. Ally - obvious. As above, but with greater effect, and mutual defense. There would be a point system (to be determined) that is gained per turn and pooled. Presenting a change in status from one level to another or proposing a treaty uses these points. The more drastic the change, the higher the cost. I.E. declaring war on an ally costs more than doing it to someone you are in a Cold War status. Changes can be unilateral. One side may declare war or break a treaty. Doing so does cost points. The chance to succeed on any of the offers would be based on the faction's XE/AG/AR/WP. The actual chance is yet to be determined.