Alignment in darkfall online is designed to judge something about how good or evil you are regarded by other characters and by guard towers. If you kill an evil character, you will gain alignment, or you lose alignment in the case you kill good ones. As the elements of alignment is keeping on changing, it is difficult to see a character is good or bad in nature. There is a way recommended to you to judge it. to see if a players is considered good or evil, just target him. If his name appears in blue, he is considered good and you will take an alignment hit for killing him. If his name is in red, then you gain alignment by killing him.
Having a bad alignment and going red does have some consequences. Its consequences include being an obvious target to everyone in the game, your own racial towns will not welcome you and you will be attacked by the guard towns. What is more, you can not have the same advantages as the normal players have, which makes sense because since the bindstones are in town, you would be attacked immediately.