Loot is a term for the item(s) or currency obtained from killing mobs. The term for the action of a person engaged in obtaining loot is "looting." The items or currency typically drops on the ground after the mob dies—hence the term "drops." The term is also interchangeable with "drops."

Loot in party, like inside dungeons is distributed by rolls. It doesn't matter who picks up item, or if pet does that. Each item is subject of RNG roll. When rolling for item each player gets random number between 1-99 and highest roll wins. Some items are not subject of automatic distribution and have to be rolled manually. If you want equipment, press PageUp, if not press PageDown to skip.

Some loot, like weapons or other gear pieces, may be bind-on-pickup and is soulbound to character who picked it up. Bind-on-pickup equipment wants confirmation if you really want it.

Manually rolling loot is really slow process and on some dungeons it should be disabled at start of dungeon by party leader.

There is some special loot that gives every member of party or raid their own copy when picked up.

default loot settings in dungeon

Part leader may change loot distribution methods. This has to be accepted by every member of party.

Option Free-for-All distributes all items randomly to all characters. This means someone may get weapon or something they can't use.

alternative setting with no rolling and loot given to correct class