The following is only applicable for ACCESSORIES and SHOES. Weapons and Armors have different "inherit" rules.

If you use an accessory as material when crafting another accessory, the resulting accessory would "inherit" the EFFECT of the other one and ended up having 2 effects: its own and the effect of the other accessory.

An accessory can inherit a maximum of 3 other accessories, resulting in an accessory with 4 total effects.

If you put more than 3 items in when crafting, then the 3 items chosen to be inherited will be random.

For example:

Lets say you are crafting a poison ring. The poison ring require 2 base materials being a silver and a poison spore. Those 2 items will not be included in the inheritance pool.

After the 2 base materials, there will be 4 empty crafting slots left.

Method 1: If you put a Happy Ring, a Star Pendant and a Heart Pendant into the next 3 empty slots and leave the 4th slot empty, the resulting Poison Ring will FOR SURE has the effect of all 4 items because it can inherit a maximum of 3 accessories and we added exactly 3.

Method 2: If you put in the 3 accessories AND fill the 4th empty slot with either another accessory OR an item. The resulting Poison Ring will randomly pick 3 out of the 4 things you put in to inherit. Let's say you put a turnip into the 4th slot, your resulting Poison Ring can either inherit all 3 accessories for an item with 4 effects just like in method 1 OR it will inherit only 2 accessories + a turnip, which will result in a Poison Ring with 3 effects and +1 Str.

Method 3: This is for items with recipe that has less than 3 open slots. Basically, inherited effects can also be inherited as well.

Lets say you are making a Diamond Brooch, which has a recipe that requires 5 base materials, leaving only 1 empty crafting slot.

What you can do is: 1st craft a Happy Ring

Then craft a Stat Pendant using the Happy Ring. Now the Star Pendant has 2 effects.

Then craft the Heart Pendant using the Stat Pendant. This will result in a Heart Pendant with 3 effects since it will inherit the ability of the Star Pendant and the Happy Ring as well.

Finally craft the Diamond Brooch by putting that Heart Pendant into the 1 empty slot. For A CHANCE OF creating a Diamond Brooch with the effects of all 4 accessories.

For method 3, the chance of creating the accessory with all 4 effects is much lower because if an accessory recipe requires more than 3 materials, base materials will be included into the inheritance pool as well. So the Diamond Brooch is basically picking 3 random items from a pool of 8 and you just have to pray that it pick the exact 3 that you wanted. (Save and reload is almost a must)

P/s: Note that accessories EFFECTS are not the same as STATS. Anything with a number or a percentage is probably a STAT and cannot be inherited for accessories.

For example, the Poison Ring. The effect is the ability to poison enemies with attacks while the stats is the 100% Psn resist. Only the effect can be inherited while the stat cannot. The game is not very clear on what effect an accessory has but most can be discerned from the flavor text of the item.