Yes. Losing a Ranked match in Invincible VS deducts League Points (LP), and your rank can drop if your LP falls below your current tier.
There is no rank decay for taking a break, but LP is adjusted at the start of each season. See When do Ranked seasons reset?.
Need more help? Submit a ticket and select Invincible VS as the game. Our team will get back to you as soon as possible.
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