Falling is a mechanic in LSD: Dream Emulator. It is usually in the form of water or a seemingly endless pit. In Violence District, sometimes when linked there, you will end up floating not far from a building or on top of one.
Taking a step will either teleport the player to the ground safely, or cause them to fall. Falling will cause your dream to end immediately, and usually end in a Downer dream, although it is possible for it to end in an Upper dream as well.
When falling the camera rotates upward slightly (not fully vertically) before fading out, and subsequently ending the dream.
Falling may also cause the plot on the Chart to vastly change, and even go off the main face.