Wtf is outlaw mode and why should I care? Besides giving you extra XP does it actually do anything else? Like are you activating open world pvp or is it just for XP?

its open world pvp, at level 55 u get 10% loot chance. with the soups and outlaw thats a 25% increase

 

How does it work? I activated outlaw but still can't attack nearby players. Should I activate something else? And if outlaw is off can someone attack me?