[quote=@MelonHead]

(Simple explanation)
1st round won, 100
2nd round won, 200
3rd round won, 300

Beat three people +300 

Total points from tournament, 600.
[/quote]

I agree with this.

So if your character looses their sword, it would be funny if they find a slightly different colored sword for the next battle. :lol But on a serious note, if you do loose your sword, if it's reasonable they could get another one then I don't see a problem with it. The people betting should know how rare the equipment would be.