Theoretically, there are several kinds of failure criterion such as the Maximum stress/strain criterion, Hill criterion, the Tsai-Wu criterion, Hoffman criterion. Yet in commonly used softwares such as ABAQUS and ANSYS, Hill criterion is the planted one due to some numerical reasons.
U could refer to the software documents and the original papers of the above authors for detailed info.
Hi Abhishek Parida, you can find the answers from an ASCE paper: WoodST: A Temperature-Dependent Plastic-Damage Constitutive Model Used for Numerical Simulation of Wood-Based Materials and Connections