diff --git a/app.js b/app.js
index 0297894..363e26e 100644
--- a/app.js
+++ b/app.js
@@ -819,12 +819,18 @@
         grid.classList.add('has-stars');
     }
 
+    function applyPenalty(amount) {
+        if (!amount) return;
+        state.currentLevelXP = Math.max(0, state.currentLevelXP - amount);
+    }
+
     function handleWrongAttempt(options = {}) {
         const { timedOut = false } = options;
         const feedback = document.getElementById('feedback-msg');
         const card = document.querySelector('.card-container');
         state.streak = 0;
         game.attempts = timedOut ? 3 : game.attempts + 1;
+        const penalty = game.attempts >= 3 || timedOut ? 10 : (game.attempts === 2 ? 5 : 0);
         if (card) {
             card.classList.add('apply-shake');
             setTimeout(() => card.classList.remove('apply-shake'), 500);
@@ -834,13 +840,14 @@
             game.currentInput = "";
             document.getElementById('answer-display').innerText = "";
         }
+        if (penalty > 0) applyPenalty(penalty);
         if (game.attempts >= 3) {
-            revealAnswerAndAdvance(timedOut ? 2000 : 0, timedOut);
+            revealAnswerAndAdvance(timedOut ? 2000 : 0, timedOut, penalty);
             return;
         }
         if (game.attempts === 2) {
             feedback.style.color = '#ffb0b0';
-            feedback.innerText = "Count the stars...";
+            feedback.innerText = `Count the stars... (-${penalty} XP)`;
             drawHintGrid(game.currentFact.n1, game.currentFact.n2);
         } else {
             feedback.style.color = '#ffb0b0';
@@ -849,7 +856,7 @@
         saveData(); updateUI();
     }
 
-    function revealAnswerAndAdvance(delayMs = 0, timedOut = false) {
+    function revealAnswerAndAdvance(delayMs = 0, timedOut = false, penalty = 0) {
         const feedback = document.getElementById('feedback-msg');
         const card = document.querySelector('.card-container');
         const factId = `${Math.min(game.currentFact.n1, game.currentFact.n2)}x${Math.max(game.currentFact.n1, game.currentFact.n2)}`;
@@ -863,7 +870,7 @@
                 setTimeout(() => card.classList.remove('apply-shake'), 500);
             }
             feedback.style.color = '#ffb0b0';
-            feedback.innerText = `Answer is ${game.currentFact.ans}. Press CAST to continue.`;
+            feedback.innerText = `Answer is ${game.currentFact.ans}.${penalty ? ` (-${penalty} XP)` : ''} Press CAST to continue.`;
             addToTroubleList(game.currentFact.n1, game.currentFact.n2);
             game.currentInput = game.currentFact.ans.toString();
             const answerDisplay = document.getElementById('answer-display');