Death occurs when a character's Hard HP drops below 0. In such a case, the following events occur:
- All equipped items and items in inventory will be dropped into character's grave. The only exceptions are some exclusive or items that have a No Drop flag.
- Skill loss. Depending on character alignment, the amount of skill loss will be calculated and will decrease experience bar and/or randomly selected skills values. 
Skill loss will not occur:
- on Arena;
- during Instanced Battle;
- with God's Mercy buff active while Judgement Hour is active;
- with Premium subscription active.
Approximate skill loss values depending on alignment can be seen on alignment page.