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What happens to my theme when I install the updated theme that has just came available as update in WordPress? Do I loose all the customized settings ? Am I still able to edit the footer font and color?
Yes unfortunately you will lose them. We are currently also building easy export/import option for our theme options area.
Once that is done it will be easier. As of now you will lose them. You can save those in a word document as well for again inserting them.