Avatar restrictions are primarily based on the full-body scan all players receive when logging in to the game. Players cannot change the makeup of their character beyond 20 percent of their real-world characteristics when creating a new character. This refers specifically to size, weight, and mass (as opposed to race). This encourages players to maintain physical fitness in the real world if they want their avatar to be similarly fit. There are also racial restrictions based on physical characteristics such as height. If a player meets the basic physical requirements for a particular race they are able to select that race and then customize their character to up to a 20 percent difference from their real-world form. Players may also not play multiple avatars at once.

Class restrictions are based on practical factors rather than being hard-and-fast restrictions. The basic observation is that certain racial types are more suited to certain kinds of classes due to racial bonuses or penalties. So while an elf or human could be equally good mages, a halfling would likely be better suited to a rogue or stealth class than to a paladin class. This is not a restriction per se, given that a halfling is able to become a paladin, just a practical consideration that they would face greater challenges in mastering their class than a human would.

Penalties take the form of conditions or sanctions applied to players who break game restrictions or local laws, as well as general consequences for behavior. Local laws apply based on the legal framework of the region that the player is in. These include general laws in towns or other jurisdictions against such things as theft, property damage, killing other players or natives, etc. Outside of these areas such restrictions are generally lifted unless witnessed and enforced by law enforcement. Penalties include fines or payment-in-kind, jail time, login restrictions or being banned from the platform entirely (extremely rare). There are also consequences to in-game death, including partial loss of abilities and inventory items as well as the inability to log in to Nova Terra for 24 game hours.

There are also significant benefits to players of Nova Terra, not least the ability to reinvent oneself. In general, physical discomforts such as sweat and grime are nonexistent unless the game thinks this will enhance the player's experience. There is also a weight reduction system that allows individuals to carry much more (depending on their physical characteristics) than they would be able to in the real world, such that a halfling paladin could wear a full suit of armor and carry a greatsword bigger than themselves. Players also receive 3 destiny points at the beginning of the game which allows them to acquire classes earlier than they would be able to master them. Players can also change their race through special stones that they can purchase in-game. Apart from applied racial bonuses, the game also enhances player abilities as they master their classes, which can be further enhanced by items that they acquire in their journey.