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Character Death occurs when your charecter has recieved the maximum wounds that he/she can tolerate. When you die all carried gold and loot is lost (not forever...maybe) however you do not lose any banked gold or equipped items such as weapons, armor, and support gear. As far as Characters go Normal characters are resurrected in the tavern. Hardcore Characters and limited 500 and 2000 characters do not. When Normal characters die they incur what is called an XP Debt.