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Death works as follows:
If you're in a party and die, you remain there until combat ends.
It even one person in your party survives, you'll stand back up without penalty.
If someone in your party escapes by zoning out, you're zoned safely out with them.
If your party fully wipes, or if you die solo, you do return to your bind point, but you keep your items and money.
No experience penalties at the moment, but that may change into some sort of limited xp debt system. Depends on feedback.
I hate item durability as a mechanic and will never add to any game I make ever lol
I would sooner see the option for Mythic+ style buffs/debuffs that are engaged when starting a select game mode that would be the equivalent to XP penalties and include further penalties for every death as an alternative to perma death, like having a debuff for like a missing arm that only lets you use 1 weapon from then on. (Kenshi inspired)
You sir, are a gentleman and a scholar.