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Wow I didn't even notice. That must be why the old venom tried to kill me 3 times yesterday.
Okay, here's what it sounds like. For robbing carts, breaking people out of jail, kidnapping, and murder, if the player is around your same level of alignment (chivalrous, evil, arrogance or madness), you have a chance of looting silver quality items from that player. The defeated also has a chance of losing some skill progression, and/or cultivation. I had no clue.
What do you guys think about the system? I'm not familiar with any other semi-loot (fair, right?) systems.