By default, KeyPass V4 will seamlessly read a V3 database, but write out to the new V4 format. The new database format is optimized to be much smaller in size, which results in better performance especially on slower USB flash drives.
If you wish to write out the database in such a way that KeyPass V3 can read it, you need to go to, and disable (this is enabled by default). This will write out the database in V3 format. However, all V4-specific properties will be ignored when this database is read by KeyPass V3. If KeyPass V3 reads the database and writes it out again, all V4-specific properties will be lost.
If you are using KeyPass Enterprise Edition and you have a mixture of V3 and V4 clients, you should save to the V3 format so that the master database can be read by all clients. Be sure to stick to properties that KeyPass V3 can understand (eg. only use keystrokes that are defined in V3).
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