# Risk Mechanics

Failure towards levelling dNFTs is associated with two primary risks: ‘downgrade risk’ & ‘breakage risk’. Any unsuccessful upgrade attempt bears a 30% likelihood for the dNFT to revert to its preceding level. Further accentuating these stakes, there’s a further 20% risk that the dNFT might break, leading to total compromisation of the asset.&#x20;

However, Levels 3, 6, and 8 are distinctly characterized as ‘safety levels’. Serving as buffers within the dNFT levelling mechanics, these safety levels provide dNFTs with immunity from the aforementioned downgrade and breakage risks. They act as safety havens, allowing for more deliberate and considered progressions through the dNFT levels.

These intricate risk mechanics compels dNFT holders to exercise discernment and strategy in their dNFT levelling pursuits. The need for added protective measures thus emerges - introducing risk protection mechanics, designed to insulate dNFTs from the inherent downgrade and breakage risks associated with levelling failures.

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