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Inventory
Your inventory limited only by duplicate badges, i.e. more than one badge of a certain type.
At the beginning you start with a capacity of 5. Basic capacity of 3 and 2 more spaces for the one VeryFirst in your inventory. One space of course already taken by that VeryFirst.
Capacity
You can increase the Capacity by collecting different kinds of badges (type+producer+level) and via Extra Capacity Skill Badges. These Badges must stay in your inventory to get effective.
Capacity formula:
CAPACITY = 3 + NUMBER(DIFFERENT_BADGE_TYPES) + 5 * NUMBER(EXTRA_CAPACITY_BADGES)
This means, every player can hold an infinite number of badges. Only duplicate badge types cost capacity.