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There is killing, but you decide whether to turn on PvP or not and you can switch this setting in the city. So if you're looking for a peaceful experience, you turn PvP off and just go gather where the NPC mobs aren't too high level. If you're looking for action, you turn PvP on or join a war or something like that. I'm not sure how those work though, as I haven't joined any yet.

Can you make multiple characters, I feel like this game would have a death penalty for dying and probably lose skills or something important?

You can make two characters, one per world or world group I think it was... What I've noticed when dying is equipment damage.

So you can't have 2 in the same world? Would you have to have multiple accounts? What is the world group?

I'm not 100% sure to be honest, so I'd advice you to google all of these questions.

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