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Is running out of time always a loss?

My understanding was that if when you run out of time the other side could not possibly even theoretically win, then it is considered a draw. But in this game: lichess.org/WpmGSTfbGaD6 when the opponent only had a single bishop they got a full point.

Is my understanding of chess rules incorrect?
...f2-f1N and a mate on a8 or h1, N beside K. That it the only way I see yet sufficient in terms of the rules.
"Is my understanding of chess rules incorrect?"

Yes, it is. See, you understand the rule fine - when time runs out, if the opponent player has insufficient mating material then it is a draw, but if they can checkmate, it is a loss. But what you get wrong are the different endings - it is a draw if it is a king and bishop vs LONE king. You have a pawn. This means that a checkmate is theoretically possible so you lose.

Maybe you should read some other threads first. In this past month, I must have seen at least 10 threads almost identical to yours - king and bishop vs king and pawn, which is not a draw - and some other not drawn positions, too. We should all be forever thankful for those people who are determined to answer every single one of these. I mean, you can find at least 3 new ones each day!!!
This is really the ugly face of this rule. It is even worse when it happens over the board ...
Which „rule“, @colin20g? Playing with a clock?

There‘s rule though saying: if no mate is possible it is a draw. So again, which rule?
Is running out of time always a loss? YES!
@InnateAluminum is correct
I win only with a pawn vs 2 Queen, is a cheap victory, but, i don't make the rules :-)
The FIDE guideline is that you lose if any possible mate sequence is on the board, including help mates. The Lichess rule is a sloppy attempt to implement this guideline since it in general only adds flags = loss in lots of absurd positions (such as this) but positions where no mate is possible (such as in blocked positions) is also counted as a loss by the system.

The net effect of the "Lichess rule" is that anytime either side flags in any position where either side has at least a pawn, unless the side without a pawn has no pieces at all, it's a loss. It leads to lots of ridiculous outcomes and provides no benefit in return, and is used by no other major sites, but it is what it is. This is likely one or two developers 'pet' rule.

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