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The refinement of gems is a new feature added the 05/23/2014. It allow to refined orange or red gems using refinement stones in the Refinement Master at Regia Deorum.
The refinement will be provided with a random element and tier to the refined gem, which becomes bound. There is 6 elements and 3 tiers. Gems with the same element and tier set on the same equipement will activate a bonus. Grace of Earth can be use to at least refine a medium element. When you embend a refined gem on an equipement, it will be become bound.