Each weapon and armor item has a durability meter that goes from 0 to 12. When a player dies, all of their currently equipped gear will lose one durability point (as well as the last equipped item for each slot). As the durability level of an item goes down, it will have worse stats and require more resources to repair. An item that reaches zero durability will not break, or lose any further durability on death. But it will be effectively useless until repaired at a Repair Bench.
At a Repair Bench, items can be repaired one at a time or all at once. Velorite fragments are the main material required to repair items. The amount required will depend on the item's quality and durability level. The lowest quality items require no materials to repair, while the highest quality items will also require whole Velorite. Most items will also require an additional material to repair from lower durability levels (e.g. Bronze Ingot for a bronze weapon or armor piece).
A more detailed table of repair requirements will be added here.
A detailed description of stat loss with durability will be added here.