In Australia a fuse as close as possible to the battery is mandatory under our airworthiness regs., regardless the chemistry of the battery.
Incomprehensible to me why anyone wouldn't use one.
The intent of a fuse is to protect the downstream wiring which as has been mentioned can cause plenty of havoc without getting anywhere close to causing the battery to malfunction.
We all have fuses in our circuits, it's just that some people have the wiring itself as the fuse. Select accordingly as you wish.
7A fuses seem typical and sufficient, but I guess it just depends on what you have between your battery and the next fuse. Often the switches are a limiting factor, 5A seemingly a fairly common switch rating. Certainly I consider the master switch should be rated at least as high as the fuse in front of it - I don't want my master to weld itself before the fuse blows.
We also have a requirement that of the lithium chemistries only LiFePo4 batteries may be used (not talking starter or propulsion systems here) and that they must be approved to one of a fair list of standards:
IEC 62133-2 Secondary cells and batteries containing alkaline or other non-acid electrolytes – Safety
requirements for portable sealed secondary lithium cells, and for batteries made from them, for use in
portable applications, Part 2: Lithium systems.
RTCA DO-347, Certification Test Guidance for Small and Medium Sized Rechargeable Lithium Batteries and Battery Systems.
RTCA DO-311A, Minimum Operational Performance Standards for Rechargeable Lithium Batteries and Battery Systems.
UL 1642, Standard for Lithium Batteries.
UL 2054, Standard for Household and Commercial Batteries.
UL 62133 Secondary Cells and Batteries Containing Alkaline or Other Non-Acid Electrolytes – Safety Requirements for Portable Sealed Secondary Cells, and for Batteries Made From Them, for Use in Portable Applications.
UL 1973 Standard for Batteries for Use in Stationary, Vehicle Auxiliary Power and Light Electric Rail (LER) Applications.
A pilot I know here found his approved LiFePo4 battery smoking on the tray behind the seat before take off. Some fairly hasty removal ensued, suspecting thermal runaway. In the end it turned out the canopy had focused onto the battery and set the casing smouldering. Once it was removed it stopped smoking, but was retired from service.