In order to turn on LootShare, a player must enter a Friend Chat in which the owner has enabled Lootshare. Usually, players are promoted into recruits so they are able to use LootShare. To activate LootShare, the player must be in a Friend's chat, and click on the money bag. You will need to wait 2 minutes before it activates, and once it does, you are allowed to use it.
No matter how much damage the player dealt to the monster, if they are in the clan's LootShare and are within 16 squares of the defeated monster, then they are eligible for LootShared items. LootShare takes the value of the item on the Grand Exchange, and is given to the player. In that case, the total of the item(s) is subtracted from the player's chances of collecting another item, which is called commonly "LootShare potential". When a player receives a high valued drop from a monster, it is very likely their "Lootshare potential" will be depleted.
In order to increase LootShare potential, there are several ways to do so. One is by ignoring drops that monsters give, even if it is of a great value. Another way is to wait for your LootShare potential to increase, as for every drop you do not receive increases your chance of getting one. The second option is usually not recommended as there can be other players with an extremely high LootShare potential and thus, will gain most of the drops.
Certain untradeable drops are eliminated when LootShare is enabled. Drops unobtainable by LootShare include quest items, Ancient effigies, Champion scrolls, Clue scrolls, Tokkul, and Slayer/boss monster heads. Additionally, the Ring of Wealth does NOT affect drops while LootShare is on. The chances of getting a drop increases every time someone else in the Friend's Chat gets a drop. Lootshare points may be accumulated over time, but are automatically reduced by 10% per day. In addition LootShare combines the damage together when in a Friend's chat. Loot given is not based on who did the highest damage.
The worlds available for lootsharing are: 4, 5, 7, 9, 10, 11, 12, 14, 22, 28, 29, 30, 33, 34, 35, 37, 39, 40, 41, 44, 45, 46, 48, 49, 51, 54, 56, 63, 64, 67, 72, 76, 77, 79, 84, 85, 87, 88, 92, 105, 106, 108, 114, 117, 120, 123, 134.