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The above link is an in depth summary that I wrote about the currently known core concepts and game systems of Chronicles of Elyria for my gaming community (and even a few not so well known tidbits). Information in this article has been verified to be true by Soulbound Studios as of September 12, 2015 (some information may change after this date, but I will try to update).
"That is a whole lot of information! Kudos to you for pulling all of those separate threads and thoughts together. I've looked it over, and can verify that it is all accurate, so you're free to release."
-Lindsey Walsh (Camigwen), Director of Outreach, Soulbound Studios
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ChroniclesOfElyria.com
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http://www.mmorpg.com/blogs/raynforce/092015/28763_Chronicles-of-Elyria-A-Rundown-of-the-Known-Systems-and-Concepts
I would assume that bugs, as when it happens in other games, will be addressed and compensated for accordingly. Also, just because you become incapacitated, or even coup de grace'd, doesnt mean you are dead and need to pay again. If Im out traveling and get attacked and lag out, I wont have to just pony up money to start over. I will have a chance to log back in and spirit walk to my body. Yes, it means I may be fully looted, but it wont cost me money. And if you die of 'natural' causes in the wilderness and spirit walk back to your body it probably wont be looted unless someone happens to find it. And there will probably be rewards for finding bugs. So if you find that invisible wall by a rock and get stuck you can report it, and probably end up better off, even if you die. I think you should think about it as monetizing the players life, not their death.