Effects of continuing after a total party wipe?

I've had a couple of encounters so far where I stumbled into enemies that were higher level than expected and gotten wiped out. At the game over screen, I chose the option "Continue". After doing so, I didn't notice any negative consequences. I was plopped back just a few metres from the area I died, and was free to continue on as if nothing had happened. Am I missing something? Is there some negative effect from a party wipe?