Just like most games, level up is getting EXP or XP and you level up when you get enough EXP. To get EXP in this game, use spells or kill players. Everytime you level up you get some shards which vary on which level you are on, and you get 10 diamonds. You also get a skill point.
The level cap was 225, and was removed shortly after Aurora was released. Now, to get past level 225, you need to talk to the Chaos Knight under the Forever Tree Root Town and spend 10,000 shards to get a new level.
Note: you must have EXP full before "purchasing" new levels.
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