BwE has an auto-combat system, in which all of the combat within the game is automatically handled for you. You fight a neverending stream of enemies, with damage taken and received based upon your stats/skills/equipment. Enemies may have titles that change their damage, HP, and defences. For instance, a Weak Young Fox the Tank will have a lot more HP than a normal Weak Young Fox.
When a battle is won you get gold, Experience and a chance of Drops.
Regardless of whether you win or lose, your HP and MP are fully restored, though you only receive rewards for victory.