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When people die inside Elder Tale they respawn in the Cathedral.  
In the first episode a penalty for dying was mentioned. However, no specifics
were given.

Does the light novel or the manga shed some light on what the penalty (or
penalties) might be?


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2013-12-07T16:46:06.583
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log-horizon
What is the penalty to dying inside Elder Tale?


This is covered later in the LNs (which are being translated and are available
[here](http://www.baka-tsuki.org/project/index.php?title=Log_Horizon)):

  * Adventurers lose EXP while NPCs die for real.
  * However, there is an additional penalty that is not obvious: when an adventurer dies they lose some of their memories.

Major spoiler:

> If the cathedral is destroyed, adventurers cannot respawn and die for real.


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2013-12-07T20:32:29.207
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The newest episode states: resurrection will cause a loss of EXP.

My guess for dying:

  * (the same)
  * people can take your stuff
  * takes time to "come back to life"
  * you lose part of your equipment


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