For the Official guide on Flags see: http://www.mortalonline.com/files/flagging/MO_Flagging.pdf
There is 3 colors for the flags :
-blue : innocent players.
-grey : player who have done bad things (attack, steal, kill) on blue players
-red : player who have murdered 5 other players or more.(the count of murdered decrease of 1 for 20 hours in game without murder)
Other important rules with the flags :
Players of all colors can attack grey or red players whithout getting grey themselves.
Merchants can choose to not interract with grey and red players.
Red players loose 10% of attributes when they resurect after a kill.
In Guarded cities, it is possible to call guard who kill the grey and red players.
In more detail:Edit
Neutral: blue - If attacked, the attacker becomes globally allowed
Locally allowed: Light grey with 1 stripe - Players can attack a person they see with this flag and not suffer any consequences. (lasts 2 mins)
Globally allowed: Grey with 2 stripes - Anyone can attack without penalty. (lasts 2 mins)
Murderer: Red - Anyone can attack without penalty.
Neutral is the base flag that everyone has if they don't have any other flag. If a player attacks a Neutral player then the attacker becomes Globally allowed. Locally allowed is seen when you have the right to attack someone but not everyone does (because they are not Globally allowed). This usually occurs when someone attempts to pickpocket.
- Feel free to edit this and add detail or explain better