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https://forums.elderscrollsonline.com/en/discussion/658773
Death by Dragon Penalties
Oh what a glorious sight it is seeing players mowed down by dragons. Especially that strafe manoeuvre. However these are dragon encounters and those majestic beasts should do more than kill you.
PC-NA
Death by Dragon Penalties 220 votes
No penalty, in fact you get a buff increasing your chance at surviving the encounter if you die
Lose your gold, Dragons are hungry for gold
Lose gold and a random piece of gear is destroyed forever
You are dead. Your journey in Tamriel has ended for that character.