the kraken should only come if you run out of time and it would attack your ship and you would defend it and dj enemys would board your ship. and then if you died (which you would, you would just get rep for how long you survived the kraken. then it shows a cutscene of your ship being dragged down and your ship in a sea of sand then crabs would get your ship to the sea of water and the screen would go black and then your ship would pop out of the water and you wake up in jail.
i dont know just an idea.