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How does the srs work?

Will a miss result in a full reset or will something else happen? And what would be the schedule for a kanji

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A miss will result in the time between prompts to be reset to "1 day", or less than that if it was already close to 1 day.  However, if you then get it correct it will go back up faster than normal.

The full algorithm is detailed here. It's basically the same algorithm as the one used by Anki, but slightly improved.