No, monsters only exist inside buildings, dungeons and other areas. There are ‘random encounters’ where when you’re walking on the map, you’ll encounter an ‘invisible’ spot where a monster attacks you. You can choose to fight or flee.
While in battle – when your stats go down, you’re affected in a few ways.
Health: Obviously, you’re dying…. so eating, drinking or using spells to heal yourself is wise. If you health falls to 0 (zero), you’ll have to leave the battle and go heal (and sulk…)
Fatigue: You’re growing tired. If your fatigue falls below half you will begin to miss more often when attacking. Replenish your fatigue, or keep it above half at all times – and you’ll have a better chance of hitting more often.
Strength: If your strength drops lower than the dmg value of your weapon – you won’t be able to equip it… so either keep a item to replenish your strength, or keep a spare weapon you can attack with that has a lower dmgHealth value.
Mind & Luck: Work the same as fatigue. If either of these values fall below half, you’ll tend to miss when attacking.
If any of your non-health skills fall to 0 (zero), you’ll have to leave the battle.
A Note about Monsters
These rules also apply for monsters – so if you can bring a monsters fatigue, strength, mind or luck down to below half, or even down to 0 (zero) – the monster will miss more (or miss you entirely).
Using a weapon that does one dmg type (eg: dmg Health), will mean you will constantly do damage to that stats. Using a weapon that damages multiple stats (dmgHealth 10, dmgFatigue 5, dmgStrength 2) means when you attack – the game will randomly pick a stats to attack based on your weapon. Hence why dmgHealth is the most popular weapon.