That's exactly what I envisioned, they would have a set radius and perhaps spectators may have a weird feel, but when they step into the radius they will see the fight in real time. (As in the way the fights see it)

So I've been playing SLO for about a week now and it's got me interested seeing as it looks very fun... For someone with extreme skillsets, good internet and the byakugan to see the fight that fast. It looks amazing and too amazing, when I see the battle, I'm a normal human-being so I can't comprehend things that fast, of course this is what it would look like and I give it an A+.

However I have an idea for ways combat could be carried out, one of which is the fact that if you would carry stats like agility or speed to measure this when players are in a fight, the player with the most speed would be able to move faster in a slowed time area. Think of a giant quick time event but actions are still carried out in the same time by both players. Let's try to visualize this.
We have a Ninja player who's a Jonin level taijutsu user and his speed is at 89/100. Heiko Hamacho.
Then we have Kohiko Kannkare who is a puppet master and doesn't move as fast but has a separate stat system for his puppet, but he goes to about 67/100.

They settle that their fight will happen around a certain radius and so if they leave, time goes back to normal and the person who leaves is abandoning which can be possible.
The Fight starts with both players slowed down, they can each cast jutsu and move around like in the current game but everything is slow and more lock on target because if it's not it might result in someone saying: "What the fuck! I hit him!"
So let's say Heiko uses Fire Shuriken (A custom ability don't worry about it) He casts and through a combination of numbers (as per usual) is able to cast it, Kohiko has time to dodge but for each close call must idk, complete a small tap of a button to do a quick dodge, then you go into taijutsu where players can select where to hit and whoever has more speed or plans their attacks better can win. Heiko goes for a punch but Kohiko is smart and blocks it with a hand taking slight damage, then kicks Heiko. This allows players who train more have a bigger advantage but give a chance to players who take the time to think, what's he going to do. Remember, if the opponent is 100-1 towards you in speed, he'll obviously win, but it's just a thought.

Hopefully I could help because I really want to see this game succeed, I'm also a lore fanatic so if you want to borrow some of my lore or ask me to write some for clans I can.