Negative level

Each negative level gives a creature a -2 penalty on attack rolls, saves, skill checks, ability checks. Also inflicts a -1 penalty to effective level (affects things like spells and abilities which rely on caster level or character level). Negative levels stack.

If the target has as many negative levels as its Hit Die or levels, it dies.

Negative levels also affect maximum hit points.
 * For monsters, each negative level reduces hit points by 10 %. Epic monsters regenerate negative levels at a very fast pace, however, the inflicted HP damage does not heal.
 * Players lose HP and SP, probably also 10 % per negative level. Healing negative levels does not restore HP nor SP.
 * Negative levels from wearing items inflict a -5 penalty to hp and a -1 penalty to attack, skills, and saving throws. They do not affect spell points or caster levels. One negative level per contradiction in alignment (max 2), regardless of the number of items equipped. An item can give more than one negative level. These negative levels do not stack with negative levels from spells and attacks with regard to death by insufficient levels.

Prevention
Permanent / undispellable
 * Cleric Death domain - level 9 feat
 * Druid Nature's Protector Undying Beast (tier 4)
 * Paladin Improved Courage of Heaven (core 4)
 * Wizard Pale Masters in undead form are immune to negative levels.
 * Vistani - Mist Stalker IV
 * Shadowdancer's Shadowcaster enhancement (T3)
 * Warforged / Bladeforged are naturally immune to negative levels from spells.
 * Purity sentient filigree set bonus
 * Raging Inferno on

Temporary / dispellable / with limited charges
 * Death Ward / Death Ward, Mass
 * Various Absorption items and effects
 * Spell Resistance can protect you against many sources of neg. levels
 * While undead after using

Removal
Spells and SLAs Clickies Procs
 * Resting (at a shrine or after a quest completion) cures all negative levels.
 * Negative levels wear off naturally, at a rate of 1 every 2 minutes.
 * Restoration restores a single negative level.
 * Greater Restoration purges all negative levels.
 * Regenerate / Regenerate, Mass restores 4 negative levels over a short duration.
 * Break Out The Leeches restores negative levels over time.
 * Unyielding Sovereignty granted as Paladin, Cleric and Favored Soul level 6 feat, or from Unyielding Sovereignty restores all negative levels. Also available as Kingly Recovery and Rejuvenation of Dawn.
 * Positive Energy Burst restores 1d4 negative levels.
 * LGS clicky
 * LGS clicky
 * LGS clicky
 * - Greater Restoration on vorpal