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(2 edits)

How am I supposed to improve a Feat's rank? Do I refund on the lower rank version and then buy a Higher one? Like, if I get a free rank 1 feat at character creation and then want to make it rank 2 do I get +4 and then pay -8?

(+1)

In your example, you would just pay 8 BP and create a new rank 2 feat. You'd still technically have the rank 1 feat, which you could still use at a lower power cost than the rank 2 version.

Of course, you can house rule it and use the method you've outlined (refund rank 1 for 4 BP, then spend 8 BP to create a rank 2 version). 

A future revision of the rules will clarify this and possibly include rules for "powering up" existing feats.