FATE is a collaborative game at heart where all the players and the GM work together to make the game more exciting, immersive and compelling. The web of fate is a work in progress concept for making characters more interconnected with the setting.
Each player should create one NPC that has a relationship with another player character, so if there are three players there would be six new NPCs. Each player should then generate one positive relationship between a character and an NPC and one negative relationship; each player should only receive one of each relationship. As with all things FATE, these relationships and characters should be discussed amongst the players and the GM to ensure everyone thinks that they'll be a good idea and the player receiving a relationship gets the final decision on any given relationship. Note these relationships can be triggered during a game session in the same way as any other aspect.
At this point, you should have six NPC and six relationships. Next, each player creates one more relationship between two NPCs.
Between the players create a descriptive sentence for each NPC, including high concept and maybe an aspect or two.
Each player in the group should then set about creating two locations these can be as small and drab as the outhouse in a character's back garden to a whole solar system. Links between these new locations and players should be formed in a similar fashion as before. Each player can create two links, there is no particular rule about what kind of link should be used.
At this point, locations can be linked as can players and NPCs.