A handicap to the enemy's health is given after a player loses his battle several times successively. The handicap is increased from 25%, to 50%, and to even 75% which makes the battle much easier to win. If you wish to become a good Commander and challenge yourself, avoid using handicaps.
Official handicaps are nonexistent during Wi-Fi battles. However, an experienced player may wish to give a less-experienced player one merely by allowing him to take a few free hits.