Currently, if the Hero rests in an "unsafe" area, a "game over" occurs as if they were killed in their sleep. This is a little extreme, especially if the player presses the rest button by accident. It would be more appropriate if our stalwart Hero was intelligent enough to only rest under certain conditions.
What we want to avoid is the need to travel to a safe location just to rest and the possibility of a random encounter at night when you need some rest. Instead, we propose the following rest options:
1) A safe area like the Greenleaf Pool or Inn the Hero can always rest without concern.
2) All characters can build a fire at a stamina cost for gathering wood and rest without concern.
3) A Wizard can cast Sanctuary and ward off interlopers until they leave the screen (this won't work if a monster is already on screen).
4) A Thief can hide in a tree, bush, or some other natural cover while they rest
5) A Fighter can rest anywhere and has a random chance of a monster encounter while they sleep (they'll be able to fighter their way out of it).
Option 1 is native to this model of game, Options 2 through 5 are all skill-building events.