Before we can start with the KO mechanic, here is a quick recap of the current death mechanic in Dual Universe
As death penalties go, financial loss, full body looting and location displacement are only beaten in harshness by perma-death (which thankfully, DU does not have).
Other MMOs have death prevention mechanics. For example, Guild Wars 2 has a weakened downed state where the player character can crawl back from the brink of death or get a last shot in before collapsing. Albion