I agree with Falx.

Color status will not mean much to us in DFO, unless Jet decides we are going to Loreplay. Or unless it creates such an inconvenience that we need to prohibit people from going red under normal circumstances, because having everyone red would disrupt the normal pvp operations of the guild.

I do not forsee it being much of an issue though, since apparently you can declare unilateral war, like in EVE. I am sure most of the people in our faction with whom we share a mutual dislike (or even a unilateral dislike) will end up being flagged via that system so if being red is a pain we will avoid it rather easily.