Karma will only decrease if your sissy dies in your dungeon, or you hold a sissy (that didn't agree to stay long-term) in there more than 7 days. In that case, you'll lose 1 karma point a day.
I'll drop an update in a few days for the master mode. It will fix pretty much all the known bugs and add a few new features. I'm working on a big update right now, otherwise all these bugs would've been fixed by now. Sorry about that. And thanks for your suggestions!