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There are two types of Experience (XP): Skill XP and Level XP.
All Skills begin at rank 0 and all Units begin at level 0.

As Units participate in Actions; they gain Experience (Experience Points or XP) both as a cohesive group and in forming particular actions.  Each Action is associated to a particular skill.  In order to improve in any particular skill, Unit(s) and Leaders must achieve at least a Significant success in their action.  (See Human Unit Bonus and Scholar Leader Bonus for exceptions which modify this.)
There are different ways to improve skills and levels:
Whenever at least a Significant success is achieved as a result an Action: you will receive a message stating the # of XP in a particular skill that you have earned.  You may assign this XP however you wish among the Leaders and Units which participated.  The XP must be assigned to a skill based upon the action taken.  If the group was Scouting, and you rolled an Astounding Success: you could assign 2 XP to 'Scout' or 2 XP to 'Spy' or split them 1/1.
Whenever at least a Significant success is achieved (see the chart at the bottom of this page), you gain a number of Leveling 'XP' to assign as you see fit between any participants.
Skills tend to hone and improve faster in the face of danger.  Part of the risk/reward paradigm is managing that risk to give your forces a fighting (pun intended) chance of surviving with the knowledge they can gain from combat.
Units that participate in combat level faster than those that do not.  The amount of XP gained from Combat is based upon the following factors:
  1. The Average level of your Fighting Force (Force Average-FA) is calculated.
  2. This is then compared to the level of each enemy destroyed/routed.
  3. For each enemy destroyed/routed that was more than 2 levels below your Force Average (FA), you receive .5 XP.
  4. For each enemy destroyed/routed that was up to 2 levels less than your FA or equal, you receive 1 XP.
  5. For each enemy destroyed/routed that was above your Force Average (FA), you receive 2 XP.
  6. After adding up this total XP value - any fraction is rounded up.

The total expressed above becomes the amount of Leveling XP gain.  Twice this becomes the amount of Skill XP gained.

Some important notes:
Learning Curve Table
Skill Rank
or Unit Level
# of XP to Improve
1-31
4-62
7-93
104

Once a skill is acquired it then becomes Skill Rank 1.

The above-chart explains how much XP it takes to advance to each level, or achieve each skill rank.  For example: You send your Chief and a Unit of Goblins to Scout a Grid.  They achieve a significant success!  You now have (1) XP to assign to Scout.  You decide you want your Goblins to become specialized Scouts and Spies, so you give them the XP.  Since this Unit had no skill ranks in Scout, they immediately improve to Skill Rank 1.  You annotate: "Scout[1]" in their skills section.  If XP is gained, but not enough to improve the skill another rank, annotate: "Scout[3]^1" .

Second Example: To go from Level 3 to Level 4, you need TWO (2) XP.

It should be noted that the 'Scholar' leader bonus does not affect skills at ranks 1 to 3.

SuccessAmount
Significant1
Astounding2
Epic3
Legendary3
The maximum level of any Unit is 10.
Whenever a Unit gains a level - you may increase a single stat by 1.
The stats that may be increased are:

* : You may only increase combat speed, and only one time via experience gains.
♦ : You may only increase Max Tools one time via experience gains; and never above 3 total tools.