Character normally refers to the Isekai soul where the avatar is the entity that is played.
Levels normally refer to the tier level of the character.
Once an avatar has 10 attuned items (openly worn) of their tier then the character’s tier levels up. It is quite easy to level up to tier 2 but becomes slower after that.
Once the character has made it to the next tier level, they do not lose their tier level even if the avatar dies.
Tiering up (leveling up) an item is taking two items and making one out of them. All stats are added together on the new tier item, but not all stats may be kept (the item should be balanced for the tier it is designed for). Remember you cannot wear an item above the tier you are on. Not all items can be merged, see merging items.
AC is whatever is on the items.
It is wise of a player to help their party members to gain tiers also.
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