The King of Fighters XIII/Game Elements/Timer
From Shoryuken Wiki, Marvel vs. Capcom 3 Strategy and More!
The Timer is the same thing that you know from practically every Fighting Game in existence. In a standard game of KOF, the Timer starts at 60 at the beginning of a Round and counts down to 00, in real time. When the Timer reaches zero and no character has been defeated, the character with more total life at the end is deemed victorious.
So what happens if both characters have the exact same amount of Life left? The game is considered a draw and both characters "lose". If both players were on their last character, then a sudden death round occurs with the same characters both at 300 life (30% of a life bar) and the timer set to 30 seconds. If there is another draw, both players "lose" the match.