i did the second level upgrade(settlement) and i have some questions, is it possible to upgrade it further, is it possible to make it profitable ( generates expense not income ) how can i send trade caravans if it is possible at all.
What is "natural harbor" good for, is it possible to build a port there?
A natural harbor is basically a port but it wasn't man made. I do not believe you can make settlements profitable as they are there just so you have your own mini castle to hold troops in while you try and take a castle/town from another faction. The caravans I believe come to your settlement but it takes a while considering where you placed it.
Hope this helps. :)