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An exploit is an unofficial term referring to players utilizing a bug in the game to unfairly benefit their characters or account. An exploit can be a weakness in a difficult mission or quest that allows players to finish it easily and gain the rewards without much effort. It could also be an error in the game whereby players can become invulnerable to damage, or make lots of money by fiddling with the merchant window or any such similar form of cheating to profit.
When an exploitation becomes too powerful or unbalances the game economy, ArenaNet will fix the bug.