diff --git a/backend/app/game.py b/backend/app/game.py
index 441a160..3658872 100644
--- a/backend/app/game.py
+++ b/backend/app/game.py
@@ -858,6 +858,11 @@ class GameEngine:
                 reason=f"Target square ({target_x}, {target_y}) is occupied by player '{occupant.name}'.",
             )
 
+        strength_penalty = 0.0
+        if dx != 0 and dy != 0:
+            if (player.x + dx, player.y) in self.obstacles and (player.x, player.y + dy) in self.obstacles:
+                strength_penalty = 0.1
+
         return MoveCheckResult(
             direction=direction_name,
             dx=dx,
@@ -866,6 +871,7 @@ class GameEngine:
             target_y=target_y,
             available=True,
             reason=None,
+            strength_penalty=strength_penalty,
         )
 
     async def check_single_move(self, player_id: str, direction_name: str) -> MoveCheckResult:
@@ -925,12 +931,12 @@ class GameEngine:
             )
 
     def _update_party_strength(self, party: Party):
-        total = 0
+        total = 0.0
         for mid in party.member_ids:
             p = self.players.get(mid)
             if p:
                 total += p.strength
-        party.total_strength = max(1, total)
+        party.total_strength = max(0.1, round(total, 1))
 
     def _resolve_3bout_battle_internal(
         self, party1: Party, party2: Party
@@ -938,8 +944,8 @@ class GameEngine:
         bouts: List[BattleBout] = []
         p1_bouts_won = 0
         p2_bouts_won = 0
-        p1_total_score = 0
-        p2_total_score = 0
+        p1_total_score = 0.0
+        p2_total_score = 0.0
 
         self._update_party_strength(party1)
         self._update_party_strength(party2)
@@ -947,8 +953,8 @@ class GameEngine:
         for bout_idx in range(1, 4):
             r1 = random.randint(1, 20)
             r2 = random.randint(1, 20)
-            score1 = party1.total_strength * r1
-            score2 = party2.total_strength * r2
+            score1 = round(party1.total_strength * r1, 1)
+            score2 = round(party2.total_strength * r2, 1)
 
             p1_total_score += score1
             p2_total_score += score2
@@ -1292,11 +1298,18 @@ class GameEngine:
                         m.x += dx
                         m.y += dy
                         m.visited_locations.append({"x": m.x, "y": m.y})
+                        if check.strength_penalty > 0:
+                            penalty = 0.2 if m.is_party_leader else 0.1
+                            m.strength = round(max(0.1, m.strength - penalty), 1)
                         affected_players.append(m)
+                if check.strength_penalty > 0:
+                    self._update_party_strength(party)
             else:
                 player.x = check.target_x
                 player.y = check.target_y
                 player.visited_locations.append({"x": player.x, "y": player.y})
+                if check.strength_penalty > 0:
+                    player.strength = round(max(0.1, player.strength - 0.1), 1)
                 affected_players.append(player)
 
             new_pos = {"x": player.x, "y": player.y}
diff --git a/backend/app/models.py b/backend/app/models.py
index bcfb34b..7ebf712 100644
--- a/backend/app/models.py
+++ b/backend/app/models.py
@@ -83,6 +83,7 @@ class MoveCheckResult(BaseModel):
     target_y: int
     available: bool
     reason: Optional[str] = None
+    strength_penalty: float = 0.0
 
 
 class AvailableMovesResponse(BaseModel):
@@ -117,7 +118,7 @@ class Obstacle(BaseModel):
 class PlayerCreate(BaseModel):
     name: str = Field(..., min_length=1, max_length=32, description="Display name of the player")
     color: str = Field(..., description="Hex color code (e.g. #FF5733) or valid CSS color name")
-    strength: int = Field(default=1, ge=1, description="Bot strength (default is 1)")
+    strength: float = Field(default=1.0, ge=1, description="Bot strength (default is 1)")
 
     @field_validator("name")
     @classmethod
@@ -144,7 +145,7 @@ class Player(BaseModel):
     color: str
     x: int
     y: int
-    strength: int = 1
+    strength: float = 1.0
     score: int = 0
     party_id: Optional[str] = None
     is_party_leader: bool = False
@@ -158,7 +159,7 @@ class Party(BaseModel):
     leader_id: str
     leader_name: str
     member_ids: List[str]
-    total_strength: int = 1
+    total_strength: float = 1.0
     created_at: datetime = Field(default_factory=lambda: datetime.now(timezone.utc))
 
 
@@ -208,11 +209,11 @@ class PartyDefeatResult(BaseModel):
 class BattleBout(BaseModel):
     bout_number: int
     party1_roll: int = Field(..., ge=1, le=20, description="D20 roll (1 to 20) for party 1")
-    party1_strength: int
-    party1_score: int = Field(..., description="party1_strength * party1_roll")
+    party1_strength: float
+    party1_score: float = Field(..., description="party1_strength * party1_roll")
     party2_roll: int = Field(..., ge=1, le=20, description="D20 roll (1 to 20) for party 2")
-    party2_strength: int
-    party2_score: int = Field(..., description="party2_strength * party2_roll")
+    party2_strength: float
+    party2_score: float = Field(..., description="party2_strength * party2_roll")
     winner_name: Optional[str] = None
 
 
@@ -222,8 +223,8 @@ class BattleResult(BaseModel):
     party2_name: str
     party1_bouts_won: int
     party2_bouts_won: int
-    party1_total_score: int
-    party2_total_score: int
+    party1_total_score: float
+    party2_total_score: float
     winner_party_id: str
     winner_party_name: str
     winner_leader_id: str
@@ -239,7 +240,7 @@ class BattleResult(BaseModel):
         description="Remaining bots from the defeated party that merged into the winning party",
     )
     new_party_size: int
-    new_party_strength: int
+    new_party_strength: float
 
 
 class BattleRequest(BaseModel):
@@ -267,7 +268,7 @@ class RadarTarget(BaseModel):
     color: str
     x: int
     y: int
-    strength: int = 1
+    strength: float = 1.0
     distance: int
     party_id: Optional[str] = None
     party_name: Optional[str] = None
diff --git a/botagent/bot_agent.py b/botagent/bot_agent.py
index e63d25a..7f887a5 100644
--- a/botagent/bot_agent.py
+++ b/botagent/bot_agent.py
@@ -215,7 +215,9 @@ class SmartBotAgent:
         def dist(chk: Dict[str, Any]) -> int:
             return max(abs(chk["target_x"] - target_x), abs(chk["target_y"] - target_y))
 
-        return min(valid_moves.keys(), key=lambda d: dist(valid_moves[d]))
+        # Bot chooses whether to consider strength penalty: AI prioritizes keeping strength intact 
+        # (orders by has_penalty first, then distance)
+        return min(valid_moves.keys(), key=lambda d: (valid_moves[d].get("strength_penalty", 0.0) > 0, dist(valid_moves[d])))
 
     def _step_or_attack(self, target: Dict[str, Any]):
         """Move adjacent/towards the target while avoiding obstacles."""
diff --git a/frontend/src/components/BoardCanvas.tsx b/frontend/src/components/BoardCanvas.tsx
index b6793e8..4cb1045 100644
--- a/frontend/src/components/BoardCanvas.tsx
+++ b/frontend/src/components/BoardCanvas.tsx
@@ -485,7 +485,7 @@ export const BoardCanvas: React.FC<BoardCanvasProps> = ({
           ctx.textAlign = 'center';
           ctx.textBaseline = 'middle';
 
-          const text = `${player.name} [⚡${player.strength}]`;
+          const text = `${player.name} [⚡${player.strength.toFixed(1)}]`;
           const textMetrics = ctx.measureText(text);
           const bgWidth = textMetrics.width + 12;
           const bgHeight = 16;