oh, what a huge topic.
first, fail-safe static ... that the structure can sustain/support static loads (typically limit load, 2/3 of ultimate) without failure, including excessive deflection, with any part of the loadpath failed. this failed structure can be whatever you want ... an individual fastener in a bolt group, the connection of one element to another, a beam, multiple beams.
second, if you are using this as part of your DTA, then the failed structure needs to be inspectable (ie found by whatever inspection method you use) over some period of time (the repeat inspection interval). So you need to combine intact structure fatigue with failed structure fatigue. You have to analyze the critical sites of the failed structure, and account for the fatigue damage at thee locations from the intact structure.
Rarely,. in my experience, done as fatigue damage, but rather as crack growth.
But is this for your composite wing ?
An example of this (failed strucutre analysis) I've done is door stops. the door had multiple stops, intact, and each stop was failed individually and the model re-run (with 2/3 load) to see what was critical (statically) ... intact ultimate or failed limit.
Another example is rotor burst ... where the engine rotor damages the structure and the failed structure needs to support some static loads (here it's "get home" cases, not full limit load).
25.571e defines loads required to be analyzed for "discrete source damage".
"Hoffen wir mal, dass alles gut geht !"
General Paulus, Nov 1942, outside Stalingrad after the launch of Operation Uranus.