This is not really specific to Kunlun as I don't practice or know much about it. But here is Sri Ramana's perspective.
QUOTE
This abidance as Brahman must never be relaxed, for if it is, a false notion of Truth will result which is indeed death. Such a false notion of truth due to swerving from the state of abidance in Truth introduces delusion; from delusion arises the attribution of ‘I’ to the ego and its objects, from this bondage, and from bondage sorrow. Therefore there is no greater misfortune for the enlightened than wrong understanding and swerving from reality. Just as water plants, though removed from a pool of water, do not stay at the side but cover it over again, so if a man is exteriorized, even though he may be enlightened, if maya (illusion) once begins to shroud him he will be swayed in numerous ways by the false intellect. This is due to his lapse from watchfulness, his forgetting of his true state, his going out towards sense objects. He is like a man swayed and dominated by a lewd woman, of whom he is enamoured. If, through wrong understanding and swerving from reality, a man’s consciousness slips even the least bit from the target of his own Self, it will enter into outer things and leap from one to another as a ball slips from your hand and rolls down a flight of stairs. It will begin to consider outer experiences good for it and thence will arise the desire to enjoy them. That will lead to participation in them, which in turn will destroy his abidance in the Self, with the result that he will sink into depths from which he can never more arise and will be destroyed. Therefore there is no greater danger in
Brahman-consciousness than wrong understanding, which means swerving from one’s true state. Only he who has the eternal state of consciousness (nishta) obtains realization (siddhi) and so renounces the manifestation (sankalpa) born of pramada (wrong understanding) and of relaxation from practice. Such wrong understanding is the cause of all spiritual decline (anartha). Therefore be the swarupa nishta who abides
ever in the Self. “He who has attained liberation in the state of Brahman while still alive will shine so in his bodiless state also. It says in the Yajur Veda: ‘He who has even the slightest sense of differentiation is always afraid!’ He who sees any attributes of differentiation, however small, in the absolute Brahman, will for that reason remain in a state of terror. He who locates the ‘I-sense’ in the insentient body and its objects, so despised by the various scriptures and their commentaries, will experience sorrow after sorrow.
A liberated being is one who sees himself as single and the witness both within and without the world of things moving and unmoving, as the substratum of all. By his universal consciousness experienced through the subtle mind, he has removed all the vehicles and he remains as the absolute whole. Only such a one is liberated, and he has no attachment to the body. There is no other means of liberation than this blessed
realization that ‘All is one Self’. And this ‘All is one’ attitude is to be obtained by perpetual abidance in the Self and rejection of objects without attachment to them.
The enlightened who have attained supreme knowledge shine as Being-Consciousness-Bliss, homogeneous Brahman, having utterly renounced objective reality.
QUOTE
Although ever absorbed in his true state, he is sometimes seen to experience the fruits of his past actions or to take part in outer activity; so people say that he is not free from karma since he must reap the good and bad effects of past action. Does not the rule that there is fruit of past action where there is destiny and no fruit where there is no destiny apply to the sage also? They argue: if one shoots an arrow at an animal, thinking it to be a tiger, but it later turns out to be a cow, can the arrow be recalled? Once shot, it will certainly have to kill the cow. So too, they say, destiny that started on its course prior to the dawn of
enlightenment must produce its effects, so that the sage is still subject to prarabdha karma only and must experience its effects. However, the scriptures declare such prarabdha to be unreal, because a man who has awakened from a dream experience does not go back into the same dream, or desire to cling to the dream
experiences or the body and environment of the dream as ‘I’ and ‘mine’. He is perfectly free from the dream world and happy in his awakened state, whereas a man who retains any attachment to the dream cannot be said to have left the state of sleep. In the same way, one who has realized the identity of Brahman and Self sees nothing else. He eats and excretes but as though in a dream. He is beyond all limitations and associations. He is the absolute Brahman itself. The three kinds of karma do not affect him in the least, so how can one say that only prarabdha karma affects him? Is one who has awakened still dreaming? Even if it were said that prarabdha karma affects the sage’s body, which has been constructed from the result of past karma, that would only affect him so long as he had the ‘I am the body’ idea, but once that is gone, prarabdha cannot be attributed to him, since he is the Self, not born of karma, beginningless, pure, and described by the scriptures as ‘unborn, eternal, and deathless’. But to attribute prarabdha to the body, which is unreal and a
figment of illusion, is itself an illusion. How can an illusion be born, live, and die as reality?