This ring was found in Greenland and was guarded by Ultimo. Tony took it out before they could activate its test of Courage. Later, the Mandarin triggered its guardian, but easily dispatched Mandarin and walked to New York City to take back the ring. Iron Man tried to fight it, but his attacks only made it stronger. So, he decided to give back the ring, but it still attacked Iron Man. He suddenly figured out that it was attacking because he was holding a weapon, his armor. Iron Man figured out that true courage is to put down your weapon. He shut off his armor systems, and as a result, Ultimo shrunk down and bestowed the ring to the one who passed the test. But Mandarin appeared and took the ring.
Water Manipulation: this ring can control and manipulate liquid and it can be used to erect a barrier-field made out of water on a target. The Mandarin can then crush it or peel whatever covering it has on.