How it works
On death the screen goes greyscale and a [RESPAWN] banner counts down from 5. When the count ends, the banner reads [PRESS ANY KEY TO RESPAWN]. You press any key and wake up in a bed inside a tent. From there you walk or run back to the fight. In the Aegon fight, the boss HP stayed where it was after the player died.
What you see
The banner has a taunt on each side, and the lines differ per death. Examples are "Felled by incompetence." with "Fast travel to failure unlocked.", and "Felled by vanity." with "Your corpse is a landmark." Other lines include "Felled by recklessness." with "Stealth? You're a walking alarm." and "Felled by ineptitude." with "Parkour isn't your strong suit."
The respawn tent
The tent next to the boss arena has beds marked with a red cross, potion shelves and scrolls. A camp tent with a bed, table and shelves was also shown. After you leave the tent, the Wilderness zone banner appears while you head back to the arena. The run back took about 12 to 25 seconds.
Death effect
A developer said that if you look up at the sky while dead, you will see a group of birds. He called it a little cool effect.