Now that I've played a bit, I see that the combat system is win=top and lose=bottom (or at least, surrender=bottom; I haven't manually lost yet). If you surrender, the text describes you losing all your clothes and equipment, but... the next scene everything is still there, so you didn't actually lose anything. Considering I'm a bottom, is there a reason not to surrender? It feels like if you're a bottom you just always should.

At the moment there's no significant loses to surrendering since we used it as a way for you to see the defeat scenes. In the future when we have respective systems in place we plan on giving players a temporary max HP reduction that can only be removed by resting or visiting certain NPCs when you are defeated.