Enough Jailings will result in a character being sent irrevocably to the pit, a place of eternal punishment to that given character. It is unclear if a player can delete a Pitted character and re-make, them, but given the loss, who'd want to test that out, and risk a ban?
There are Jails in Lerilin, Mirith, and Andris. A given person logged-into a Jailed character can be seen, in the given Jail they were sent to. There is no way to get out of Jail early, and Jail is considered a character in danger.