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Each 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).
- Item Decay