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Refine the 4 clothing slots to receive clothing bonuses. Refine the Weapon slot to increase PATK and MATK, Armor slot to increase PDEF and MDEF, Helmet slot to increase HP and Wings slot to increase overall attributes (the cost of wing refinement is 5 times that of the other slots.). Upgrade a clothing slot by 1 level to increase corresponding Clothing Attributes by 10%.

Refinement Stones can be used to upgrade clothing refinement levels. You can decide how many stones you want to use at a time and put the number in the Refinement Stone slot. Each Refinement Stone offers 1 Refinement EXP. When a clothing slot's EXP is full, the refinement level will increase.

When clothing slots reach the required refinement levels and the required amounts of clothing are activated, extra Identification Attribute bonuses will be granted. For instance, when you have upgraded the Weapon slot to Lvl. 10 and have activated 5 or more Weapons, your weapon's Strength will increase by 10%. (Armor receives a Defense bonus, Helmets an Intelligence bonus, Wings an Endurance bonus). Green text means the conditions are fulfilled while red text means the conditions haven't been met. You can see how many pieces of clothing you have via the progress bar.
When a clothing slot's refinement level reaches an increment of 10 (20, 30, 40, etc.), you must upgrade the other slots to the same level to continue upgrading the slot. For example, if you upgrade the Wings slot to Lvl. 20 and you want to upgrade the Wings slot to Lvl. 21, you must first upgrade the other 3 slots to Lvl. 20. The highest refinement level is 100.

Clothing Refinement Attribute Bonuses can be divided into Clothing Attribute Bonuses and Clothing Identification Bonuses. Basic attributes are displayed in gray text, bonus attributes in blue text and ratio bonuses for every upgraded level in green text. As the following image shows, since the Wings slot has been upgraded to Lvl. 20 and 5 pairs of Wings have been activated, the conditions required for "Clothing Identification Attribute +10%" are fulfilled. So Identification Attribute Bonus is 40x10%=4, with total attributes offered by Wings being 40+4=44.
In the image the Weapon, Armor, and Helmet slots are all Lvl. 30 (each upgraded level increases ATK, DEF, HP respectively by 10%), and the Wings slot is Lvl. 20 (each upgraded level increases all attributes by 10%), therefore overall Clothing Attribute bonus is 300%+200%=500%. Bonus ATK from the Weapon Slot is 420 (Basic Attribute) x500% (Clothing Attribute Bonus)= 2100.