Soul Craft

Soul Crafting is very simply put, using souls to improve an item's grade.
This is an example taken from the in-game journal.

Regular > Advanced > Special > Artifact > Legend

In order to Soul Craft, simply find your local Soul Crafting NPC, stereotypically, Julie.


then comes the actual crafting stage, drag the item you want to craft to the center, and an insurance scroll for insurance.

Insurance means that if the item fails in any way, it will not be damaged/harmed. Damaged/Harmed refers to the item either a. Destroying itself, b. Not upgrading and using materials, or c. Downgrading.


Refining

Refining is almost the same as Soul Crafting, Soul Crafting uses souls, refining uses powders.

Each level of Refining increases the cost.
Level 1 - 1 dust
Level 2 - 2 dust
Level 3 - 3 dust
and so on and so forth.
Of course, like Soul Crafting, the higher the level, the more riskier it is.

In order to Refine, find your local Blacksmith, otherwise known as Davi.

then

Drag in your items like Soul Crafting, and use a scroll for insurance if you want.