What happens when you sink in SeaFight

A message will pop up and say that your ship is sunk. at this point you can choose weather to repair your ship to 1000hp for 1000 pearls or return to the shipyard. if you choose to repair you will respawn in a random place on your current map with 1000hp and will have lost 1000 pearls. However if you don't want to waste pearls there is is a way of avoiding the charge (for this you will have to choose the shipyard option and reopen the sea chart) by looking for glitters and collecting them until you find one with hp in.