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Every item in Midgard will be destroyed when durability hits 0, there is no repairing. You can use upgrading to "repair" items as many times there is upgrades on item.

Crafting skill is raising item durability when created. Skill will triple max durability on level 100, but skill is very slow to gain. Dedicated crafters should be able to sell items crafted with high skill easily on market.

Salvage skill will refund item resources. Rate is base 20% + salvage skill effect, which is 40% at level 100 (0.4% per skill level)