It happened to me once or twice.

I don't exactly recall, but I believe it counts as a victory for both players and you go straight into the final round.

But what happens when you keep drawing ? lol

I think it just adds a bit of life to both of your bars.

Oh I remember seeing it ! But it was when both players knocked eachother at the same time. I'm asking if you leave the time to pass and not fight.

Put a match on 2-player and have both opponents just stay there until time runs out. Come back here when you're finished and tell us what happens.

I don't have the game.

if you get a draw by hits . then both characters gets around 25% health back . and you continue until there is a winner . .dont know what happens if you get a draw on time going to zero though .

It just says match extended until they are a winner.

Make a video so we can see!

I had it happen online the first or second day I got the game. Its just like in Injustice, both characters fly back and it says 'match extended' and each person gets like 1/4 health back and (i think) one bar.

You can see it in the Fatal 8 match between Perfect Legend and Prodigal Son, it happened to them once, the only thing that happens is their health goes back up to 25% and a message saying "Match Extended" appears.