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Folding and faulting are both caused by stress in the Earth's crust exceeding the strength of the material. However folding tends to occur at small strain rates (the speed at which the material changes shape or is squashed is very small), at higher confining pressures and with higher temperatures at greater depths in the earth (typically the asthenosphere and mesosphere) all of which act to stop the formation of fractures within the material leading to ductile deformation which is why the rocks can fold rather than break.

Faulting occurs where strain rates are large and there are relatively low temperatures and confining pressures at shallower depths within the earth's lithosphere. These conditions allow fractures to propagate through the rock causing faulting.

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