Two very interesting questions
@Frost yes, you will lose everything you carry when you die, even if you're a Beastman on Arboreus. You can still recover the items in your body if you get back to it in time and nobody has looted in between though. Whether other players (not in your party) can loot you (and the consequences) depends on the race/planet, of course, as for all criminal actions :slight_smile:
@MarkasUrthadar you will get drops from mobs, but mostly limited to special resources and currency. No complete items, aside from very special situations. All complete items will be crafted by - and therefore also traded between - players!