There are no penalties for dying if the PC is 4th level or lower.
Starting at level 5, the penalty for dying is:
Gold: 10% of gold or a maximum of 500 per level is lost.
XP: 50 XP per Level is lost or the maximum that can be taken without the PC losing a level.
When you respawn after death a grave stone is erected at the spot that you died and you are ported to the Ethereal Plane. Praying at the altar in the EP will present you with several options:
Pray for lost XP: A random chance to regain 1/2 of the XP you lost.
Return to Grave: Choosing this option will destroy your gravestone and return you to the place you died.
If you don't not port to your gravestone you can walk back to it. If your gravestone is still there, you can pray at it and recover 1/2 of your lost XP and Gold.
If another PC bashes your gravestone, they will get the Gold contained within.
If you are killed by another PC or a Boss Monster, the Gold you would drop into your gravestone is instead given to your killer. In the case of Death by Boss, they will drop the gold on death with their loot.
_________________ I ain't the world's best writer ain't the world's best speller but when I believe in something I'm the loudest yeller
If we fix it so you can't make no money on war well we'll all forget what we was killing folks for
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