Quote:
Originally Posted by Illuminated One
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And a quick test confirmed:
4.) If you have someone who is carrying a shroud, take an item from him and someone casts seeking arrow on him he dies.
This probably means that twist fate is aplied after the magic/globals phase. If you use it you to protect your mages you must not take anything from them or the shroud is worthless.
Hmm, kind of sucks I've spend a fortune on them and don't have a dwarven hammer for everyone. 
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Thanks for testing this.
Twist Fate is probably applied in phase 17, "Magic Items". That's after all rituals and even after all combat, except sneak discovery.