The Death Penalty

Each time you take a death penalty your maximum Health and Energy levels are reduced by 15% (this number can be modified under some circumstances—for example, if you already have a +4% morale boost from slaying two named boss enemies, your DP will come to only 11%, but at the cost of your morale boost). Each consecutive death stacks on more DP, increasing by 15% every time, for a maximum of 60%. You can work off DP by earning experience points in battle, or more quickly by gaining morale boosts from boss enemies. All Death Penalties are cancelled when you return to a town or outpost. http://www.guildwars.com/gameplay/combat/stayingalive/