Pirate The World - Online Adventure Game

I think you should lose gold for a failed attack. Otherwise there's no fear of attacking anyone and the observation ability is really useless right now. If you do lose money for a failed attack then people will be more careful when hitting a blue target and will not hit a red target.

You do lose gold with a failed attack in a sense. When you fail an attack your fame level raises by 3. This will make you lose more money when attacked plus it also gives that gold to another person instead of being just lost.

Ah, I did not know it rose that much. That's what I get for not paying attention.