Hi. I would like to know if I can cancel a character a create a new one in an arena server. Thanks :)

Yes, you can delete a character to make space for creating a new one. The restriction is on how many characters you can have at the same time, not on the number of characters you can create throughout the tournament.

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Community Team - English
"Treat your password like your toothbrush. Don't let anybody else use it, and get a new one every six months." - Clifford Stoll