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A squad is a temporary grouping. Other names include party, team and group. You can have 6 people max in a squad.
Contrast with clan.
A squad can be formed by typing /invite player_name in the chat window, a squad request is sent to the invited player. The squad request will contain a list of current squad members and squad leader. If there are no other squad members, a squad will be formed with the Invitor as squad leader.
Squad Leader abilities include -Kick Squad Member, -Promote to Squad Leader, -Set Loot Mode, -Set Loot Threshold,