Question about Delete Character function in Debug controls

[DamoclesAlpha]

I have been under impression that player cannot delete their character/save file from server run by other people unless creating a new character through Recreate Character function. However, in the settings menu for keybindings there is Delete Character function assigned to key combination Ctrl+Alt+Shift+K under Debug section.

Can this be used to delete your character in case you want to leave a specific server permanently or not? Or is that just alternative way of removing specific character from your own server?

I am asking also because I have been in talks with a friend of mine about possibility of making our own dedicated server at some point and more information we have beforehand, the better.