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Really it is stupid that you lose item, other than that let it lose all upgrades instead of breaking.
Upgrades should be like this.
Weapons:
0-5 100%
5-6 90%
6-7 80%
7-8 70%
8-9 60% (30% chance to Lose all upgrades )
9-10 50% (40% chance to Lose all upgrades )
10 -11 40% (50% chance to lose all upgrades )
11-12 30% (60% chance to lose all upgrades )
Soo as you can see, you will need a lot of upgrade stones and a lot of luck if you want to upgrade more than 8.
Mostly you will fail and more you upgrade higher chance there will be to lose all upgrades...
I second this :saiyangoku: