This is a damage-dealing and timing-related question about casting Saving Grace (SG) and Arcbond on a creature, and I or a creature I control being then dealt damage.
Choose target creature. Whenever that creature is dealt damage this turn, it deals that much damage to each other creature and each player.
Enchant creature you control
When Saving Grace enters the battlefield, all damage that would be dealt this turn to you and permanents you control is dealt to enchanted creature instead.
Enchanted creature gets +0/+3.
Say I have a 3/3 and four 2/2 and an opponent casts shock (2 damage) on one of my 2/2's. As a response, I cast Saving Grace (with flash) and Arcbond on my 3/3. The damage is redirected to my 3/3 by SG, and my 3/3 takes 2 damage.
This triggers Arcbond's effect, and all my 2/2s and myself are dealt 2 damage. Which triggers SG, and all this damage (2*5=10 damage total) is redirected to my 3/3 (3/6 because of Saving grace, but this is irrelevant), my 3/3 has taken damage, so Arcbond triggers, and so on...
Here are the questions:
Do both trigger separately for redirected damage from each of my 2/2 and myself, thus dealing a total of 3*2=6 damage to everyone else (the toughness of my 3/3+0/3 being consumed), or do they "group" all the damage and deal 12 damage to everyone else (2 for the first redirected shock damage, and 10 for the total Arcbond redirected damage)
Is the damage from Arcbond dealt to everyone before, or after the "damage counters" are put on my 3/3, meaning will this combo stop when lethal damage has been redirected to my 3/3, or will it accumulate to infinity, never letting the damage event occur because it constantly reacts to the damage being "called"? (thus technically ending the game on a draw)
Or does something completely different happen? I have gone to the comprehensive rules, but it's still not clear to me...