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- EncumbranceEach character has an encumbrance threshold: Up to that threshold, you take no penalties. Past that threshold, you take speed penalties proportional to how much you've exceeded the threshold (for example, a 50% speed penalty at 150% of your threshold). Once you've doubled your threshold you can't move at all (and can't take on any more items). Containers come in three types: Backpacks take up your back slot (and keep you from wearing a cape or cloak). Pouches take up your waist slot (and prevent you from wearing a belt). Bags take up one or both of your wondrous item slots (taking space used for spellbooks and other miscellaneous items). - Looting - Item Decay