Still your character can be defeated by:
- animal attacks
- heat / burning
- cold / freezing
- other players in PvP (if enabled)
In this case you will see the message "You have been defeated" in large letters on a red-colored screen; and after a loading interval your character will respawn.
You will find "yourself" either at your touchstone if you have placed it somewhere in the world (preferably in your favourite shelter / "base"), or at the spot where you have first entered the current game-world.
While your quickbar and equipment will still be the same like before (and you cannot lose any ingame-money nor "levels" yet), your inventory will be empty except for the touchstone-icon. If you had anything else in your inventory, it will be gone.
In "easy" combat difficulty mode (a "Pro" world option) you won't lose anything at all though if your player character is defeated. Your character will respawn with everything still in your inventory/bag and quickbar. In this case also no Death Statue will appear anywhere.
In "hard" combat difficulty mode (another "Pro" world option) drop everything from your inventory, but also everything from your quickbar and all equipment slots will drop into a Death urn too. Except for the Glider and the Flashlight if you've bought the "Pro" DLC, these are permanent equipment items.
But not to worry - an orange skull icon can now be seen on the compass, showing you the way to the last dying-spot of your character. That's where the Death Statue will be - an urn containing all the stuff that you had in your inventory at the time of your defeat. That also applies to "hard mode" (in reality in this mode the Creatures mainly hit harder).
If you get close enough you will also be able to see a beam of white light that shines from this urn way up into the sky and down into the ground to make it easier for you to find it, even through all underground layers.
If your character is defeated a second time, the beam of light and skull-symbol will lead you to the last dying spot; and only after looting the Death Statue there a new beam of light and skull will then automatically show you the way to the first dying spot and urn. This way you can retrieve one Death Statue after another.
Only if PvP-mode is activated on the game-world, then it's possible to loot Death Statues of players you have defeated. Which also means that you could lose the stuff that was dropped at defeat to other players, most likely the ones who have defeated you, since they can loot your Death Statue.
If the Death Statue is on a player claim, then the owner of the claim can take and remove it, also the one who dropped the Death Statue, but other players can't take the Death Statue if PvP is disabled on the player claim.
Since R28 a small tutorial window will be displayed upon the first defeat of your player-character explaining the death statue and skull-symbol.
Death Statues can "drop" underground occasionally, especially after falling downwards, so you might need to dig for them a little.
On very rare occasions when being defeated in the Corruption layer close to the the deepest layer of the world (end of world - blocks) or when being defeated while trying to cross the horizontal borders of the world a Death Statue might drop under the End of World blocks or outside the borders of the game-world.
Most often the Death Statue will still be within reach though and can be highlighted even where you cannot go, like under the bottom layer of the world, when pointing the cursor on it.
Remember that the beam of the Death Statue shines upwards and downwards too!
Sometimes, players mistakenly think that Death Statue must be have dropped further below, because the beam is visible under the Death Statue. When they dig down until they reach the End of World blocks and still cannot even see their Death Statue, they think a bug has dropped the urn out of reach.
But if you can only see the beam and no Death Statue under the End of World blocks, the urn usually is much further upwards and can be found in some Cave or the like when going up again.