[@Raijinslayer]: Okay, um... I know I keep rejecting your characters but they're... not really fitting very well.

To begin with, that's not how alchemy works. As explained in the OP, alchemy is a process used by bloodlines with low magical potential that involves the manual transmutation of matter using basic spellcraft as well as the usage of mana to create high-powered alchemical devices. It's basically just a more acceptable way to compensate for being a "deficient" mage then relying entirely on theurgy(normally used in rituals). It's not Full Metal Alchemist style, you can't alter the terrain and create weapons on the fly with it.

Magic traits can be placed in homunculi, it's just more difficult, so it wouldn't really make him unique among them. ^^;

Aside from the armor once again really not fitting urban fantasy very well(Though I mean, I guess if you were going for something Fate/ style but that doesn't really fit for someone meant to be Jack the Ripper. Fate/ Jack the Ripper's outfit makes more sense even if it's weird and wouldn't fit here), being "infused with the soul of a demon" does all of nothing really. Souls are generic life energy, only unique in conjunction with the consciousness. Putting a soul into armor would really not do anything and there'd be nothing to keep it there. The same goes for the knives, magi souls are only unique in conjunction with everything else.

Now for backstory... proving you can is not a good reason to try and make a homunculus since it's resource intensive. Usually very worth it, but they're made for a reason. Improperly placing the soul into a homunculus would not result in insanity, it would result in a flawed homunculus with a very short lifespan or... nothing happening at all. And I'll be honest, I'd really rather not people take historical figures for this RP? They're not very relevant for one thing, and also since it's an original setting I might want to do something with them. Especially since that part seems kind of tacked on at the end. ^^;