Death penalty

Death penalty (commonly abbreviated as "DP") reduces your maximum health and energy values by the current % amount of the penalty. Every time you earn a penalty, it is added to your current total; this total cannot exceed -60%. A Death Penalty is the opposite of a Morale Boost, although both are added together for a cumulative effect.

Note: The terms "morale boost" and "death penalty" are also used to describe whether this cumulative effect is positive or negative.

Removal
There are currently seven known methods to remove DP:
 * 1) Earning XP. Every 75 XP earned will reduce DP by 1%.
 * 2) Earning Morale Boosts. In PvE, this is done by killing bosses, killing certain mobs, or performing certain tasks. Each boost will provide +2% morale. In PvP, holding the flag stand for two consecutive minutes in GvG, holding the altar for two consecutive minutes on king of the hill maps in Heroes' Ascent, or killing the enemy Ghostly Hero on other maps in Heroes' Ascent will provide +10% morale.
 * 3) In PvP, if you are alive, the death of an enemy player will reduce DP by 2%.
 * 4) Making an "Offering to Courage" to a god's avatar will give your party 2% morale boost in Tyria, or 2% for you alone, in Cantha or Elona.
 * 5) Using candy canes. Using a Peppermint Candy Cane will remove a character's death penalty.  Using a Wintergreen Candy Cane removes 15% of a character's death penalty.  Using a Rainbow Candy Cane gives your party a 5% morale boost.
 * 6) Using Four-leaf Clovers. A four-leaf clover will reduce your party's DP by 5-15% at random.
 * 7) Going back to town or outpost will completely remove a character's DP.