The speed of your projectile is 1 millisecond, that's extremely fast and may be the reason you can't see it. Try giving it more ms and see what happens.
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You have to create a common event that activates on respawn, then you have to check the level of the player so you known how much hp you will subtract using the "Restore HP" command with negative values, for example, if every time the player level ups gains 20 hp then at level 3 you would have to substract 59 hp so he is left with 1 (you can't put an ammount bigger that the player's max hp, i tried and didn't work)
Example:
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But there is a problem, if your classes gain hp at a different rate you would have to add more pages to the event, one for each class thats different, from level 1 to 100Â and that would be very tedious and maybe bad for performance.
There could be a better way to do it, but right now this is the only way i can think of using events.
Sammo P.'s post in Animation/Projectile Complications... How Do i Make a arrow stop vanishing... was marked as the answer