There is no death penalty when a player dies either on the PVP or PVE arenas at different cities.
However, I think your question refers to only compensated deaths. This is pretty much decided by Cipsoft and their metrics on the server before your death. I've had some friends who have died due to kicks or massive lag and received no compensation and also friends (included myself) who had the luck of dying when threre was something not so well at the server, and although these deaths were our faults, we still received compensation as the server recognized it had issues at that exact moment.
As far as I know, there is no compensation when the issue was on your side, like having an energy shutdown or bad internet service.