warning: wall of text
As a vet player of Mortal Online, i do not agree with the reputation system of -50 = permanent killer, unless it is very difficult to get there.
When i played mortal online the worst people of the server were the "innocent" ones, they would always zerg protect the people sieging our property, there is a murdercount system similar to your reputation system.
once you hit 5 murdercounts you become a murderer, the problem was, i was a mounted archer and in a single fight where we were defending our own property, i shot 32 different people with arrows, i got 32 murdercounts and it takes 8h ingame to burn a single murdercount.
if another person was killed while "burning" murdercounts your timer would reset to 8h, and you would receive another murdercount
i tried my hardest to not be a murderer in that game, but eventually i was forced to be one protecting my own property.
if i am forced into the same thing in LIF then i will be quiting, i cannot afford to make a new char every time someone attacks my property, you need to have a clear system in place to make sure we can defend ourselves without taking on murdercounts, perhaps have a territory, where if somebody enters your territory you can kill them without consequence, if you can do this, i will be happy to pay whatever cost you put on the chars.
i have quit MO because of how much safety the "innocent" people have, i would like a system where your reputation drops if you kill a murderer or a innocent, perhaps a lower reputation drop on killing a murderer, the people of MO would attack a murderer on sight, knowing they can run to safety or call in more people knowing you cannot run to safety.
the reputation system could be griefed, forcing people to buy new people, or quit the game