What happens if you get the questions wrong? An hour's wait? And once you memorize all the questions and answers, the exercise becomes a mindless time-waster. I'm not sure what kind of a game you have in mind, but it seems that this dynamic will just wind up seeming banal to players.

If you really just want to discourage they dying for no reason then REWARD them for not dying, don't punish them for it.

For example they could get a better ranking/score if they die less OR they could even have some IN GAME sort of reward, like some kind of bonus that can build up but will be reduced each time they die. Then it is in the players best interest NOT to die at all, but if by chance they do, then it is not the end of the world.

They memorize the questions, its good and they have a good knowledge of the game. They might be changed from time to time if it turns out to be a problem.

No hour wait if you get it wrong. You just have to do another one until you get it right. Worst case the player click randomly 20 times and gets through eventually.

This is far from the end of the world. A player never dies unless they are looking for a fight or make a bad choice. The towns and main pathways are safe for the most part and the basis of the game is not just on fighting.

What did you have in mind for an alternative if a player does die? Is there a possibility I missed?

You clearly want to make dying rare. Just remove the temptations that would compel a player to be a total dumbass and get his shit cut off. Players are always weighing options in games. A 90% chance of survival and a decent item is something they'll probably sign on for. A 99% chance of survival and a crappy item is not worth the trouble. 60% survival rate versus a really neat item, and they start thinking about what death costs them.

So get rid of the really great rewards for difficult fights, and players won't spend as much time risking death and sometimes dying. Let them make a perfectly acceptable living in the safer areas, and make it possible to make organized expeditions into the wilds to get that phat lewt.

I'd say if a few mouse clicks are the only penalty for death, I'd be jumping in every pit to see if there's an easter egg down there. I see a new enemy? Well, I'll just strip naked, put my gear someplace safe and go fight that guy to see how tough he is. When he kills me, I'll click through the questions, go get my gear, and kill or avoid him as I see fit.

EVE is, once again, good at this. If you lose a battlecruiser, it's a serious investment down the crapper (unless it's insured). But just losing a ship isn't so bad. You've probably got three more perfectly servicable ships in various hangars around the region. But if you get podkilled, you love dozens of millions' worth of implants, and have to buy a new clone. That sucks. So you stay out of dangerous areas. I've never been podded, because I'm a little bit smart and a little bit lucky. It would be a big setback for me if I got killed, though. I'm very careful.

If you want your players to be very careful, make dying expensive and make staying alive not wreck the game.

I dont plan on making death to often. Its very easy to live around the cities without dying(as long as you dont go into any horrible dungeons or looking for fights).

What do you mean organized expeditions? It starts to get very complex when you have multiple players both battling a 'phat newt' in text or did you mean something else?

The thing is there isn't really a safe place for your gear in the wilderness that other players cant access it. Unless you buy property in the city and store some items there, but some items benefit your fighting skills. I guess you have a point. But do you have an alternative?

I could limit the items stored in your properties(and thats the advantage of a bigger house) but I dont really know how I can have death cost the player. I could reduce XP a bit but still it doesn't seem too valuable. And you will have to click more than a few times.