The War system allows villages to go to war with each other to try and hinder their progress, promote raiding, and to win a net sum of Village Funds (20,000 total possible) at the end of the war.
When two villages are at war, player-kills between them will result in that player's village losing structure points in a random village feature. The structure points are listed in the Town Hall, under the 'War Status' page. The war only ends when one village loses all of its structure points, or the village surrenders.
If a village surrenders before losing all of their structure points, they still lose a portion of their structures depending on how many points were lost.
Structure points are awarded and lost as such:
Losing a war means your village loses up to a level of hospital, shop, rob defense and wall defense, in addition to up to 3% of its current regeneration rate.
Villages may also enter into Alliances with each other. This can be used to team up with another village to wage simultaneous warfare against a common enemy. The number of villages involved in the war does not affect structure points in any way. Nor does a village joining a war late affect them.
Quick Facts about Ally-Statuses