Like it or hate it, most players are mostly defined by the gear they own, secondly by their boons, and experience worth only comes in a distant third place. If you want to have a powerful batmud character, earning the cash to buy better gear tends to take precedence over earning experience points.
Equipment has hitpoints and maximum hit points in much the same way players do. Unlike with other players, there is no real way for you to see exactly how many hit points any particular item has. Instead, you can only get a broad idea of an item's current and maximum condition.
It is a fact of gameplay that your gear is going to deteriorate over time. Gear made from sturdy materials will last much, much longer, but any normal item will eventually take damage. If you are named as one of the item's creators, it will take much less damage while you are using or carrying it, and will only lose current condition, not maximum condition. If you bought the item from another player or otherwise aren't credited with creating it, it will take damage much more quickly, and the maximum condition it can be repaired to will also get lower.
The combat sense skill, even at low percentages, will significantly reduce the amount of damage your gear will take. One common belief about combat sense is the idea of the "combat sense fumble", which will sometimes cause huge amounts of damage to everything you own of your combat sense is relatively low. There's a good chance this is a myth, for two reasons: It's largely unheard of for a passive skill to fumble, and this was happening long before combat sense had anything to do with equipment damage.