Both of these actions are done through the Blacksmith NPCs located in Regenshein and other towns.
There are no Cash Shop items to prevent backfiring of Leveling Down equipment, but there is no risk associated with Transferring things.
How to TransferEdit
Transfering equipment means to add a "skin" of a different weapon or piece of equipment. This does not have a chance of failure.
You will need 1 Athlon for each item that you will be transferring and there is a small fee for each transfer.
Put the item you would like to keep the stats on in the 1st slot, Athlon in the middle slot, and the look you wish to have to the last slot.
Confirm the transfer and a box will appear to show you the look and stats of the newly created gear. If it is correct, confirm it again.
You can only transfer the looks of the gear for your class. For example, a cleric can not have a sword skinned to her wand.
If you have a piece of gear with an undesired skin, you may purchase Purifying Ore from the Cash Shop or from other players. You can not reskin the item unless you remove the old one first.
How to Level DownEdit
Leveling down a piece of equipment is to reduce the required level of that equipment. This has a chance to backfire and increase the level instead.
A piece of equipment can only be leveled down 15 levels maximum. After about 4-5 attempts the process will begin to fail so reducing the level 15 times can be quite difficult and costly.
To Level Down gear, select the option from the talk menu. Drag the gear to the box at the top and confirm it at the bottom. The bottom slot will show you the level it will be after the process.
If a process does fail, it may raise the level or leave it at the current level. It will not destroy your equipment as reinforcing might.