Experience

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Victories temporarily increase a hero's power during an adventure, but Experience (abbreviated "XP") permanently improves their capabilities. Each time you finish a respite (see below), you gain XP equal to your Victories, then your Victories reset to 0. In other words, your Victories are converted to XP when you finish a respite.

For more information on how XP increases your hero's power, see Heroic Advancement in Making a Hero.

Source: Draw Steel: Heroes · printing 1.01b