* Parents' trait then add %chance that traits from parents will appear. if both parents have same trait, this %chance is even a lot higher.
* Inbreeding add %chance that bad traits will appear.
*Lastly, breeder's Animal Husbandry and horses generation affect the minimum and maximum number of traits that will appear in a horse.(Currently the maximum number of traits experienced on one animal in game is ??)
Examining an animal will show traits, if one has the required skill level: