No, you do not.
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Yes, it is like normal pking in there you do lose items also if you kill somebody you will get there stuff.
The best monster to kill in Runescape would be the King Black Dragon.
For drops, RuneScape doesn't count how many of each monster you kill. Instead, every time you kill a certain monster, there is a random chance of getting a drop. For some items, the chance (the probability) is greater, for some it is less.
Corporeal Beast, Mithril Dragon, Kalphite Queen, King Black Dragon, Tormented Demons, Chaos Elemental.
its called killing things... you get the best stuff possible, with loads of food, and you go kill some things that drop valuable things