Retreat

A hero may retreat from combat anytime it is his turn. Players cannot Retreat if the hero is defending in a siege (unless he is in a Stronghold that has an Escape Tunnel) or fighting against an enemy hero wielding the Shackles of War. The hero will reappear in the Tavern ready for immediate re-recruiting and retain all artifacts but lose all armies.

Retreating (or surrendering) is a good idea

• when defeat is imminent
• as a means to travel to a distant town, to be re-recruited there, however this is tactically unsound and costs 2500 gold (and the hero's current armies).