Here's what I can remember:
For about a one week period, entrants are allowed to play for X number of hours. Usually, this averages out to about 6 hours a day for whatever period they set. Most people buy a timer or special clock to keep track of time. If you are over the time, you are disqualified. Everybody is entered automatically.
There are 4 levels. Iirc:
Newbie: 0-29
Lowbie: 30-49
Midbie: 50-79
Highs: 79+
Levels are determined by your highest combat skills, usually either the hit or dmg ranged, pistoleer, or melee. If you have even one skill in the tier, that determines it, even though the rest of your skills are in the lower tier.
Each level is restricted to a single monster type. The past few years, the newbies have always been assigned to cornudacauda and lowbies have always been assigned to feffs. Midbie and highs have varied. I believe last year, highs were assigned chompers, while midbies were assigned neconu (I think.)
You get points based on the maturity of the monster, usually 1 point for youngs and 7+ for stalkers.
Last year, a very controversial rule was started where you only had to loot the monster to get the points, rather than actually doing any of the work to kill it. Thus, it didn't matter who was the better player, it only mattered who had the strongest friends. I think nearly everyone wants this rule abolished.
The prizes are the main attraction. for the first three levels, the top prizes are rare UL armor sets. Usually, the newbies can get boar, the lowbies get angel, and the midbies get shadow. The top prize for the highs is usually a land area. 2nd and third is lower level armor sets, although I do believe 2nd prize for the highs is also shadow. Places 3-10 get a piece of Merry Mayhem armor, and all levels get the same piece. Every year a different piece is given to all who place, so it will take 7 years to get a full set. Interestingly, a single piece of mayhem is often worth more than some of the armor they offer as prizes.