Death occurs when a character's health is fully depleted. Most of the time, the character will enter an incapacitated state, in which they lie on the ground and are immobile. An incapacitated player can either be revived, or they can be ganked. Once a player is ganked, they will lose all of their items in their inventory and will respawn at their bind point. Their items will be left at a gravestone at their place of death for others to loot.
Sometimes combat can result in a decapitation for a player. This is an instant death, and there is no chance for revival.