How are battles calculated in PvP?

Below is the explanation of how enemy characters are chosen:

• At one point in time
• (1)There are characters that are currently engaging in battle
• (2) There are characters that are currently waiting to battle. 
• Once a character chooses to engage in a battle, the character is pitted randomly against those characters that are currently waiting to battle. 

During a battle, the character has 3 options:

1. The player can continue and attack the opponent
2. The player can reroll the opponent
   1. NOTE: Re-rolling an opponent has a cost of X wagered SKILL
3. The player can leave the arena

WARNING: Leaving the arena in the middle of a battle has a penalty!