So I am playing this amazing game (kudos!), and I have a question that I can't interpret (I am Greek) about what happens when you lose a battle, either with an adventure card or with another character.

For an example, I draw an adventure card, and I get Dragon encounter. I don't have a lot of strength so I lose a life. What happens in the next turn? Do I have to leave the square or I have to keep fighting the encounter until I lose all lives or the encounter is defeated?

Do the same rules apply on encountering an enemy player? I can't seem to find anything on the rulebook, after the "you lose a life" part.