Yes, and set "Erase Data" on so there's a ten-try limit on the passcode before it wipes the device.
I've wondered about that feature. Let's say a "friend" grabs your phone and starts hitting random numbers and does it ten times. The phone will erase. Since you are the rightful owner, are you able to restore that phone via iCloud or iTunes or did they do it in for good? I've a password on my phone, but it seems like a resourceful thief could eventually get in if they're patient enough with the 4 number combination (don't have a 5S or I'd make the password alphanumeric). It's tempting to limit the tries to 10, but was concerned that some child (or childlike acquaintance) could wipe my phone if set to erase after ten tries. Will backup restore in this case?