Death systems in online RPG games are often maligned, criticized, scorned, and outright hated. However, they fulfill a critical aspect of games that is almost always overlooked by the player: having something bad happen when your character dies imparts a sense of tension and excitement. There is simply no excitement in adventuring through a world where loss of life is meaningless - a game with no or little penalty for death will soon be fully explored, and become boring.
In Camelot, we will balance the good of excitement and tension with the bad of having a death penalty. There is no death penalty for characters under 6th level. When your character dies, over 5th level, no equipment will be lost - but he will lose experience and a small number of constitution points. Even with the exp loss, your character will never "lose" a level based on the death exp loss - instead he will just remain at the beginning of the current level.
To mitigate the experience point loss, when a player dies, a gravestone is erected at the death spot. When the player goes back and prays at this marker, half of the experience that was lost will be returned. Also, the first two deaths the player has (per level) will be at reduced experience point loss.
If a dead player is resurrected by a player character, he will lose half the normal amount of experience, and will not lose any constitution points. Constitution points can be bought back from NPC healers.