It's one of those areas I think is hard to properly address. For example, going with Option 1 would make it "better" for organized CWLS hunts, but given how large our DPS is now compared to the HP of lower-level S ranks, you'd have to massively increase the HP (or else it would just become "hit it twice instead of once")...and if you massively increase the HP, then it becomes absurd for people actually at the appropriate level to engage the mark. You'd effectively be telling people that "even though you're Lvl 50 fighting a Lvl 50 mark in Lvl 50 territory, it's not for you. It's for the people that are in other content and double your level" and that doesn't feel right, either.

Your Option 2 sounds like the most "fair" approach from a logical perspective, as it already applies to FATEs themselves. I'm just left wondering how you would turn the marks into FATEs in a way that would still make them distinct from just another FATE chain.