Ego is fully restored upon entering battle. During battle, all characters can restore their ego up to their maximum with consumables, and Camwhores can additionally use the Recover, Girl! abilities, which heal anywhere between 10 and 160 ego, depending on the ability used.
If your ego runs out, you die and all progress in the forum is lost. There are no other penalties from death. You keep all cred you've earned up until that point, and take no extra equipment damage.
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