A grappled fighter has -4 to DX (p. B370). This affects combat skills, giving -2 to Block and Parry - and a grappled limb can't block or parry. Dodge is at -1, equivalent to the effect of -4 DX on Basic Speed (which isn't reduced). If a technique gives a worse defense penalty (e.g., -4 for Arm Lock), use that instead. Finally, the victim can't step or change posture while defending, so he can't retreat or use Acrobatic Dodge.
The grappler has no penalties. However, he can't parry with a limb without releasing its hold on his victim. To retreat or use Acrobatic Dodge, he must let go with all of his limbs.
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