“Look out, everybody, things are about to get awesome!”
The Lost Loot machine (or more simply Lost Loot) is a machine on Sanctuary III that stores loot that was not collected by Vault Hunters. It is located in the crew quarters of Sanctuary III. It automatically collects any item of Rare quality or higher, whether found in chests or dropped by enemies, unless a Vault Hunter explicitly discards the item from their inventory.
The Lost Loot machine is only functional when the game is set to Cooperation mode. When the game is set to Coopetition, the Lost Loot machine will not collect any loot.
The Lost Loot machine's inventory is shared across an account's characters. It starts off with a total of 6 slots in which lost loot will be stored. This inventory size can be upgraded further by purchasing the relevant SDU upgrade from the SDU table at Marcus Munitions, up to a total of 13 slots. Interacting with the Lost Loot machine will cause it to dispense the loot it has found, one piece at a time. As such, characters may not deposit items into the Lost Loot machine, only collect them from the machine. The Lost Loot machine will collect any loot of any type, including cosmetic items.
When the Lost Loot machine would collect more items than it could possibly hold, it will begin to prioritize the loot it keeps. Priority is first given to gear that is of Legendary quality, continuing down the scale to Rare gear. If there is more than one piece of gear in that classification, the gear that has the highest item score will be kept. Since inventory is shared across characters, playing a high level character after playing a low level character will probably cause the low level character's unclaimed lost loot to be discarded. Similarly, switching to a lower level character without first claiming Lost Loot may prevent the lower level character's lost loot from being preserved.