Backgrounds are crunchy bits of character flavor. "Advantages" (which are self-explanatory) give the character an edge of some kind. "Compensations" (the term for disadvantages in Shatterzone) hold back the character in some way. They usually balance out (a -1 for every +1) and are geared towards the character template and its concept. For instance the "Old Scout" template, an experienced and salty Fleet veteran, has "Increased Skill Adds: +4 which adds +4 Skill points for the cost of 4 Attribute points. This is paired with and opposed by "Skill Limitation: Charm [-4", which blocks the character from putting points in the "Charm" skill or any of its Specializations, but frees up 4 Attribute Points.