@Jens_Rasmussen It's hard to put the full description of it into a short feature sentence, but basically you get experience points relative to the amount of damage you deal versus how much EXP the enemy has to give. You also gain EXP for recovering health points and skill points. It took a lot of work to try and make that as unexploitable as possible lol, but I'm sure people will still find out ways to get around it.

You can level up mid-combat, which will increase your HP and MP by a percentage of your new max values.

The reason for this system existing at all is because if you die in combat, outside of boss encounters and certain areas, you can revive at the last church you visited for a small fee. I've tried to cut out grinding from the game if you're just going through it normally and that helps a lot. It's definitely intended to have a more casual difficulty.