To create a Chaos Item, these are the following ingredients you need to put in the Chaos Machine:
Jewel of Chaos x1
Items upgraded to +4 (or more) with option +4 (or more)
The more upgraded items you put in the machine, the bigger the chance of success. A successful combination produces the following:
Chaos Dragon Axe
Chaos Nature Bow
Chaos Lightning Staff.
Notice: * If your combination fails your items will be downgraded.