I am not sure whether it is a bug or not but it seems that even baron level characters have access to retinues. Is it because of the buildings or is it working unintentionally.
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A lot of buildings in Lux invicta grand tiny amounts of retinue, check the holding owned by the owner and mouse over the buildings constructed, it'll tell you how much retinue they give. This combined with the % multiplier of technology can lead to some smaller barons having some retinue standing about.
well, it was partly intended to facilitate incremental upgrades on retinue size, but I haven't been able to do balance checks since I stopped around 2 years ago
It's a very interesting feature in my opinion, for the human it always turns out pretty great, you cn selectively stack bonuses to get to a comfortable level, and the ai doesn't tend to hire them unless it can afford them either, it is a shame for the smaller guys however as you tend to just kind of crush their 200 brave men in a blink of an eye.