If you're referring to the script function, the 4 values fade the particle system as a whole, not by particle age. (It is possible that the level editor provides similar option, didn't check.) This is mainly used to limit the visibility range of the particle system (if you get too close, or if the PS is to far, so that GPU resources can be conserved (for example, the dust particles that float near the windows, in the initial level of amnesia, where the game starts)).
The meaning of the params is:
FadeMinEnd - FadeMinStart - FadeMaxStart - FadeMaxEnd
too_close_to_see - full_opacity - full_opacity - too_far_to_see
In the
particle editor you can create your own particle system (don't overwrite the ones that Amnesia uses - save somewhere else), and you can control how a particle fades during it's life time by going to the color tab, and playing around with the options in the Fading group (you can tint them, or make them more or less transparent by modifying the alpha value). You can set:
start color/alpha
mid color/alpha
end color/alpha
This effectively defines 2 time spans in the particle lifetime, so there are also two numeric parameters which you can use to control where exactly the mid point is ("mid relative start" - values near 0 mean close to start, values near 1 mean close to the end), and how long the particle should retain the "mid" state ("mid relative length" - 0 makes it transition at once, values near 1 should take up the entire time span).