Self Founded/funded. What are the rules?

[Linfang]

I took a two month hiatus because being Uber twinked got boring after level 25. While I was playing I ran across these "Self Founded" or "Self Funded" characters. Some were casual. Others hard-core and would not even group with twins.

So I figured what the hell and rolled a Enchanter. I knew the basic concept. You can only wear items you either looted yourself or crafted, and can't trade or use auction.But what if someone leaves a body decaying with a fine steal sword on it? Did I break the rules already? Does anyone even care? What are the actual rules?