I played kinky dungeon a lot and I like the prison system. My main issue with that system is that its almost impossible to escape sometimes. I could make the prison system better if I come up with something interesting but I still think a game over is necessary.
I think what I should do is like the home in MonCurse. When you lose you get sent to the fox/latex home and then resume from floor 1. I could even put a store there and some lore.