Each Difficulty Level

So I understand that there are 4 different difficulty levels, but what I would like to know is how each of them are different from the rest. I am currently on the 2nd difficulty level, and have noticed that when I die, I lose exp. How much am I losing and will that increase as I progress. Also is there any other things besides exp loss.

3 difficulty levels*
You lose 20 resistances in Cruel and suffer a 5%(?) exp loss when you die.

You lose 60 resistances in Merciless and suffer a 15% exp loss when you die.

There are only 3 difficulties at the moment. Normal, Cruel, Merciless.

The only difference between normal and higher difficulties is obviously the monster difficulty and you lose experience upon death.

Edit: Forgot the resistance penalty. Poster above me is correct.

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ErrorCode wrote:

3 difficulty levels*
You lose 20 resistances in Cruel and suffer a 5%(?) exp loss when you die.

You lose 60 resistances in Merciless and suffer a 15% exp loss when you die.

Incorrect it's 7.5% exp pen on death in cruel...

Ahh ok, cool, thanks for the reply. Couldn't seem to find anything posted anywhere about this.

Is there better loot drops or other carrots in the higher difficulties?

Wow I am a slowpoke I guess, but they removed a difficulty? (and why ?)

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KingGloborx wrote:

Wow I am a slowpoke I guess, but they removed a difficulty? (and why ?)

Because they added an extra act with around 50% more content to the game.

So previously you had 4 Difficulties x 2 acts = 8 in total
Now you have 3 difficulties x 3 acts = 9 in total

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Kjellfh wrote:

Is there better loot drops or other carrots in the higher difficulties?

Well the areas in higher difficulties are higher level, so the monsters are higher level, and they drop higher level loot.

Edit: Basically, the "carrot" of higher difficulties is the ability to get more exp, level up more, reach end-game content, and climb the ladder.