Let's break down what you wrote in detail, but as if I were five years old.
1) First of all, factions need squads. Without squads, a faction cannot recruit units, defend its territories, or conquer those of others. Creation is an "action" of the faction and does not consume actions of cities or characters. To attack foreign territories, a figure with an attack action must be at the head of the squad. A squad may contain more than one figure. Figures without an attack action but with a defense action may be part of a squad. Figures without defense or attack actions cannot be part of a squad. A squad without a figure with an attack action at its head can only move through faction territories and take defensive actions. The squad limit is determined by controlled cities. On the turn of their creation, squads cannot spend their first action (but figures that are part of them can). If a fresh squad has two or more actions, they may use their second one according to the usual rules. A squad may be created at any point controlled by the faction. There is no limit on the maximum number of units or figures a squad may contain. A squad may contain any types of faction units, without any restrictions.
We're sucking on a bottle, did I get that right?
Overall, I didn't understand the point. What do attack and defense actions mean — is that written somewhere? What's the point in the end — can I "hire" (for free, or for 1 AP? or how?) a "squad" (of what size?) wherever I want and send it to the slaughter? Like, auto-wreck 30 against 10 guards of a neighboring province. And what are the limits on hiring? I could hire a thousand fighters if I wanted to.
Some "figure" wouldn't be able to hire workers, but some other one would? Which one, damn it? What's the difference? What is a "figure"? Just a person written into Nebos's file?
2) Units are recruited in cities, spending their action. To hire a unit, a template must be set up in the city. The template is created by the same rules as ordinary non-Knight characters, using standard equipment. With the exception of Kanamia, the template must use the city's origin bonus and the faction's regional bonus. For example, if Revnland captures Justia and creates a unit template, that unit will not have protection from loss or destruction of equipment (Lorelei's regional bonus), but will have access to the Stealth skill (Revnland's regional bonus). When a template is changed, all units previously recruited under it are disbanded.
We're sucking on a bottle, did I get that right? And overall, do we have to generate our hireable guards taking into account generation from the capital?
Whose "action" is that, who owns it? Will I be able to change the unit template as I wish? I see these guards every day in RP.
3) The cost of recruiting a unit is determined by its specifications. If a unit uses a mount, then creating the unit costs gold equal to the mount's cost. For each piece of equipment, including one-time consumables and the mount's armor, the unit spends one unit of equipment. If equipment is insufficient, the unit cannot be created. Each recruited unit spends 0.4*number of skills gold per turn. Units are recruited directly into any of the created squads, regardless of territorial location. The unit limit is determined by controlled cities.
We're sucking on a bottle, did I get that right?
And where do I get gold to maintain a unit of a thousand fighters? But like, can I hire a thousand guards in any city? And what stops me from hiring ten thousand in one turn?
4) With a couple of exceptions, there is no passive income in the game. To obtain gold or equipment, a faction must spend an action of a city or character.
Where do we get this income then? And where is the general income and stockpile, and what does it depend on?
5) Figures have their own actions. Unless stated otherwise, an action may be performed only at the figure's current location point or an adjacent one. Figures outside squads are unable to move through faction territories and are located in its capital. By default, a figure may perform only one standard action per turn. The defense action is an exception: it does not spend the character's turn, automatically activates on an enemy attack, and may be used any number of times per turn.
Some figures have passive properties listed in their description. For example, Lois Ephereal gives Florenzan 300 gold per turn, without needing to spend any actions on it, and Grimban Odolerus, while alive, allows the faction to recruit units without spending equipment.
We're sucking on a bottle, did I get that right?
Who are figures — Knights? And without some jerk in the garrison, all of Kanamia will surrender to Gownorez, who just flew by into Solenoe?
Action = use of the stock global ability (move somewhere, like the description of our idiots)? And how do I get proper actions besides this stock crap?
6) To attack, a squad must be on a cell adjacent to the point being attacked. All enemy squads located in the location and in adjacent locations connected by a road participate in the defense of a location. For example, when Lorelei attacks Lesszen, Lesszen will receive reinforcements from Windhell and Dusqwing, but not from Grimgale or Blacksol (since Dusqwing lies between Lesszen and either of those two locations).
We're sucking on a bottle, did I get that right? We have no army and no squads at all (the capital, I remind you).
So if I hypothetically create some squad of mobs of a thousand people, and assign them default ability properties (since we're in a multinational capital, but at the same time a 0-national one (nice setting)), can I just capture a neighboring province and push the default map +one red?
7) Captured cities become incapacitated for five turns. They cannot take any actions, but their passive effects (bonuses for defenders, increased unit and squad limits) continue to function.
We're sucking on a bottle, did I get that right? We won't capture a damn thing.
We can't even play out the first turn in two months, what five.
8) Ships can carry only one squad, require an action to load, are produced only in ports, and can attack only other ports. The closest ports to each other are at a distance of one cell from each other.
We're sucking on a bottle, got that right.
What ships? We still can't sort things out on land.
9) Movement of land squads is possible only along roads. One turn = one cell. For example, Sanbornia cannot attack Olivie, since there is no road between it and Sanbornia that would connect these two points.
We're sucking on a bottle, did I get that right?
Like, an attack hero can only walk along a road to the next point or what?
10) Diplomacy with other factions requires a figure to perform a diplomatic action. Diplomacy is conducted with the highest-ranking person of the faction. At the time of diplomacy, the figure is on the neighbor's territory, with all the possible risks.
Are we sucking on a bottle? And what are the risks? Astral subjugated an entire region even without RP, just by showing their jerk with one action along the way, and with a snap of the fingers automatically moved dih rayderson to themselves, and nothing was needed.
11) During a faction's turn, events are possible, such as the arrival of a mysterious painting merchant. These events require spending an action of any of the faction's figures. Some events may change a figure's location.
We're sucking on a bottle, did I get that right?
Do they mean AP?
Your merchant was killed after you stocked up; otherwise, no entrepreneurs exist in this world, and hoping for them is just idiocy.
12) The goals and policy of a faction are determined by its ruler, whether a player or an NPC.
Unfortunately, the only thing our ruler is — is the most handsome; otherwise, no policy or goals are felt.
13) Health, spirit, and AP of units and figures are restored at the start of their turn. For example, if Axel Himmel spends all his AP on indecent drawings with Carnea and is attacked from Revnland, he will have no AP left for combat.
Like, if a boy with some RP-bums initiates in the same turn, how did he spend it? Then it's understandable, otherwise no.

