How does it work? For example if im level say 40 and I find a mob that spoils Mithril Daggers that happens to be level 20 and is dark blue to me do I still have a chance to spoil it? If not what about if it were light green?
The normal drop rules apply to spoil as well. So at green there's no penalty at all, and when a mob turns light blue there's a slight penalty. Far into dark blue there's no point in wasting your time trying to spoil something.