That rule sets the level that you will lose exp at if you die, not whether or not you will lose a level. He still wants exp loss, just doesn't want players to lose their level. This is actually not a bad idea. I have exp loss disabled because I don't want people losing their levels when they die, due to the special circumstances of my deleveling system. But, if we stopped people from losing their level when they die and could still have exp penalties, I would enable that.
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