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IMPORTANT NOTE: These rules are NOT currently in use.

Suicide Kings is an extremely easy loot system to understand and to run. This is its main strength.
This is an excellent flash which makes Suicide Kings extremely easy to understand.
http://www.shadowlords-gorefiend.com/web/mods/SuicideKings.swf

A summarized description is that a loot distribution order is initially populated by random order. Then, whenever an item drops, those at the top of the list can choose to “Suicide” (take the item and move to the bottom of the list.) Then, everyone below them moves “up” a slot. Those who are not in the raid stay in the same position.

Summary
This system is friendly to players who can't participate in Raids all the time. However, the cost of this is that those with high on the list might pass on several upgrades to wait for a really good item. Those on the bottom of the list are encouraged to pick up everything because they lose nothing by doing so (see "Life at the Bottom" below). 

Check out  Kaliban’s Class Loot Lists to determine who gets priority suicides on which items. 

Life at the Bottom

Members at the bottom of the list are only permitted to suicide on an item if they can show that the item is an improvement over what they are currently wearing. 

Sharding Items

In the event that an item goes all the way to the end of the list without anyone wanting it, that item will be sharded and the shard rolled on.