In the Mechanicum red book 'the price of failure' reads...
Where this secondary objective is used in a scenario, destroying an enemy lord of war choice always represents a secondary objective in the game.
'The price of failure' rule is in a list with other secondary objectives - at the start of that section is this...
The following is a summary of the main additional secondary objectives used in battles in the age of darkness missions.
Which particular secondary objectives used will be listed in the mission being played.
I think they're trying to keep questoris knight households as a viable army for missions - if each one gave up two
VPs when it went down in any mission there would be no point in taking them; they aren't as solid as the internet hype makes out.
The 'dominion' mission it is used in has accumulating
VPs for being on objectives at the start of your turn and it would be very easy for a knight player to dominate without 'the price of failure' - in that mission, each knight i lose has to have earned 2
VPs before it goes down in order for me to
break even and i've seen more knights taken out on turn one than i've seen make it to the end of a game.
Hope that helps!