Combat currently has two damage types: Melee and Magic. Food is needed to fight monsters (otherwise you will probably die). Combat rounds occur every minute. Your character will attack a monster once, and the monster will attack your character. This repeats until either you kill all the spawned monsters for that hour, an hour passes, or you die.
If a hero dies during a fight, no XP will be earned.
XP is gained depending on how many Monsters you defeat and is applied only if you survive. Loot is dropped only upon defeating a monster.
Using the defensive style will level up your defence skill, which applies to both melee and magic defence.