Destroy a item, like in most asian games?
That enchanting for 1 Gold coin.

no

The upgrading looks like this: If you have success it upgrades to 1, you klick upgrade and if success it upgrades to 2, you klick upgrade and if success it upgrades to 3, you klick upgrade and if not success it downgrades to 0. With your item will not happe anything (only stat become higher if it successed).

whats max?

Max number of upgrade is 20 for every thing