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But my question is, does Titanic Chess really need a setup diagram? Maybe, I only have to show the starting position of the regular chess pieces, and the position of the front line. The remaining pieces are placed randomly on the board, according to certain rules. 

This being the case, I'd do exactly that (just show the orthodox pieces and the front line).

I just updated the diagram. Please let me know if you like it. 

Also, please have a look at pieces' movements and capturing abilities and see if they make sense. I tried my best to keep them as simple as possible.