See how matrix failures are modeled in Helius PFA.
In Helius PFA, a matrix failure is modeled by applying a scalar damage variable to each elastic modulus of the matrix and re-calculating the composite properties. As the matrix becomes more compliant there is less resistance to strain between the constituents, and the dependence of composite properties (other than ) on axial strain is reduced. Therefore, the fiber is still modeled as nonlinear in a matrix failed state and the longitudinal modulus of the composite is calculated using the rule of mixtures.