The primary way to upgrade your items is by selecting "Enhancement" at a Steam Forge. Once there, there are a number of ways in which you can strengthen your gear:
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Use a Seril Stone (for weapons) or a Gower Stone (for armor) to give stat boosts to your equipment. However, there is always a chance of failure, and a failure could remove some of your current upgrade bonuses. You can purchase Premium items, such as an Artisan's Touch or a Master's Touch, for a safer upgrading alternative!
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Use a Craftsman's Hammer or a Master's Hammer to give your weapons an S upgrade, for an added attack boost. You cannot have a higher rank of S upgrades than standard upgrades on an item though.
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If the item is socketed, you can use enhancement to insert a core machine into it. This will turn it into a steam machine, with a powerful new skill to use in combat. (Visit Core Skills & Steam Machines for more information on steam machines.)
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You can also use a Costume Scroll to create a costume item out of a piece of upper or lower armor. While this costume will not provide any additional protection or stats, it will allow you to disguise your current gear from curious opponents.
At the cost of gold, Neo Steam, and Soul Crystals, you can also modify your equipment using "Alteration" at a Steam Forge. This will alter the item's composition and replace its current stats with new, randomized stats. Think carefully before trying this, though, for you never know what sort of stats you're going to get back...
