In Albion Online, characters will lose their whole inventory upon death in a Red PvP zone, and their corpse can be looted by any other player who happens to be nearby. Players have the choice of racing back to their body after they re-spawn, but may be racing towards disappointment. The Full Loot mechanic was designed to incite feelings of frustration and loss in a player when they die, so that when they win a battle, their victory will seem even greater.
Where do the full loot rules apply? Edit
Full loot is enforced in the red PvP zones in the world. Yellow zones have a knockout system instead of losing your whole inventory. Players who knock you out in the Yellow Zones will receive silver equal to your loss in gear durability. When knocked out, a popup window gives players the option to wait 35 seconds to get up or to die. When a player chooses to die (for example, when a hostile player is camping their body) they will drop their full inventory. This occurs in green and yellow zones where the knockout mechanic applies.