Confused on incentive for open world PvP

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To defend the lands and resources of Nazarick.

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The incentive to risk your gear is the odds of getting materials that are worth more than the gear is being higher than the odds of losing your gear.

You do not have a high chance to lose gear until you have built up a lot of corruption. Until then, the relatively low (though nonzero) chance of losing gear is likely intended to be less discouraging than the chance of gaining materials. Statistically, this is a simple Expected Value calculation, and easily tunable as such.

There's also no reason you necessarily need to bring your top level raiding gear when you go out to mug people.

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Well then. I hope those mats are good!