Grace is receiving what we don't deserve.
As Christians and martial artists were faced with challenges and often find those challenges to be inspiring because we understand they lead to a positive outcome and our growth.
In self-defense, it's important to remember that we're not trying to win or avoid losing as much as we should focus on simply doing whatever is right, regardless of the outcome. It would be wonderful if we had the physical and mental integrity to show people mercy, and simply restrain ourselves from not giving someone what they deserve. However, the Bible tells us that “he who is slow to anger is stronger than the mighty” (Prov. 16:32). In this passage we see that the most challenging requirement is to avoid doing something we might want to. When I think of grace, and the fact that by definition it's not fair, to give someone something they don't deserve might be harder than simply withholding what is just, which is the definition of mercy.
As Christians and martial artists I think it's most important for us to cultivate lives that extend grace, in addition to mercy and righteousness. Like most things we encounter as Christians, this is not humanly possible. For that reason, the Bible reminds us that we are to extend only what's been extended to us.
Like the logo that reminds us to abide in Christ, I would hope the name of the school reminds us to provide for others what Christ alone is provided for us! And, in that way, we'll be more like our Father in heaven (Mathew 5:48).