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The ability to upload a custom avatar is granted to people with a Helpful or Creative title, ArchKnights, Moderators, and other staff members. It is also granted to some people for past service such as the old Grand Council, forum beta testing, etc. Advanced Roleplayers and other group members do not get upload rights unless they have it from some other source. Some official contests will have a specific avatar as a prize that is not available other forum members.
We limit custom avatars to certain people because otherwise the forums would be overloaded with even small images.

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First, practically speaking, storage space can be tight sometimes. We have a lot of posts in the database, and a lot of members.
Second, speaking on policy, custom avatars are a privilege used to denote status. They are given either to those who are helpful or creative or to those who volunteer their time.
Third, aesthetically speaking, we have made the decision that all of our publicly-available avatars would be based on the Artix Entertainment games. This is an Artix Entertainment forum. If you're not satisfied with the choices, submit your own AE-related avatars or earn the privilege to upload your own.