From the RR2 war FAQs
Who decides which fiefdoms will be forfeited to which alliances? Is this completely random?
If an alliance only has 2 fiefdoms and is eliminated because they lose their members, will their 2 fiefdoms be given randomly to other alliances?
Can this happen so that Alliance A can lose a war that they have actually won because Alliance B was given fiefdoms that they never won?
I think I saw this happen yesterday, and it’s not fair. Alliances that are eliminated because of player count should not lose their fiefdoms randomly. Their fiefdoms should remain on the map as is, unless they have been won, fair and square.
It’s not fair for a winning alliance to lose money, boosts and gems because someone decided to randomly hand off another alliances’ unused fiefdoms.
Is this really possible? Or am I misunderstanding this senario? If so, I will write a post in suggestions about changing this - it doesn’t make any sense.