If I'm able to upgrade an item to DUO/TRI, etc. and I wear the item and die like a peasant to NPC will it downgrade?  Thank you in advance, have a great day!

If i am not wrong, it will only downgrade if youre on a négatives karma. :)

Thanks so much Saintsword, much appreciated. 

I've neve seen gear degrade from dying.  I have lost things from inventory.