How do Abyss Points work?

My questions are:

1) Are abyss points awarded immediately and can be used immediately?

2) I hear that you lose AP when you are killed by other players. So it's possible to lose all of your AP that you've saved over time if you are killed enough times? Kinda sucks if you're low level in abyss then I guess.

1) Yes. Abyss points are granted (there's no update system at any specific time like WoW) instantly and can be spent as soon as you have them.

2) Yes. You do lose points when killed (by players) in the abyss, but it's based on your rank, your opponent's rank, your level, your opponent's level, and how much of your HP they themselves dealt to you in damage (whereas you'd lose less if a monster had you to 10% life and the player finished you).